NMG chalks out new growth strategy

CEO Thanachai Santichaikul said that under the strategy, NMG will also launch stringent measures to reduce cost, including the reduction of paper consumption, headcount freeze, centralising of redundant functions and reducing all unnecessary expenses.

The group will also tap new revenue opportunities, particularly from the synergy of old and new media set to provide total media solutions to its business clients.

"In addition to two spin-off subsidiaries - Nation International Edutainment (NINE) and Nation Broadcasting Corporation (NBC) - we are looking for other spin-off opportunities in our potential subsidiaries in the near future," said Thanachai.

He added that the spin-off strategy is part of NMG's policy to reorganise corporate structure designed to speed up growth and self-reliance of individual subsidiaries for any further expansion in the future without relying too much on the parent company.

"Under the spin-off strategy, we are looking for new partners who are able to speed up growth and expansion of our subsidiaries better than we, the parent company, are doing currently," said Thanachai.

Thanachai said that NMG last year divested under-utilised assets and continued to control cost and headcount, including the lay-off of 200 employees in July last year. The group also sold its building complex on Bangna-Trad Road in the second quarter of last year to reduce interest burden and other expenses in maintaining the complex.

"We were able to reduce our operation costs by about 6 per cent last year, including the reduction of our selling and administrative expenses by 10 per cent and by another 6 per cent for the cost of goods sold," said Thanachai.

He said the company expected to reduce total operation costs by another 15 per cent this year, including the convergence of its news rooms.