MCOT banks on UCL, revamp

Corporate August 03, 2012 00:00

By Watchiranont Thongtep
The Nat

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Though results last quarter might be disappointing, MCOT Plc has high hopes for this third quarter when it will air UEFA Champions League (UCL) matches live in non-prime time slots and revamped news programmes in morning and evening prime time periods.


“We expect to see a slight drop in year-on-year growth in the second quarter while the quarter-on-quarter outcome should be positive in line with the recovery of business after the massive floods last year,” Jassada Promjad, chief financial officer, told The Nation this week. 
Kiatnakin Securities said that although in the second quarter MCOT witnessed an 11-per-cent increase in profit on quarter, on year it still suffered a 21-per-cent decline to Bt365 million.
The brokerage’s analyst said media agencies are withholding advertising on Modernine TV until they can see that the recent reprogramming appeals to viewers.
News programmes last quarter were too weak to win the confidence of advertisers so they are waiting to see more improvement in ratings, the analyst said.
However, Jassada said that last quarter, the company’s radio business gained strength, especially upcountry, after the company focused on cross marketing in such regions as the North, Northeast, South, Central and Greater Bangkok. Marketing activities are now in place and are drawing more spending from local sponsors. 
Ratings for the newly revamped morning and evening news talk shows remain low as they had just begun early this month, but advertisers will hopefully feel more conformable about allocating budgets to the shows soon. Another factor that can help MCOT maintain its momentum this quarter is the live broadcasts of the UEFA Champions League, which is considered one of the best soccer tournaments in the world. The 2012-13 season will feature 23 matches. This is a collaboration with TrueVision, the country’s largest subscription-based TV provider and local holder of the tournament’s media rights.
The company believes that its performance could get back on track this quarter thanks to improved ratings for the news shows and sports tournament, he added. 
Kiatnakin Securities also said Bangkok Entertainment Co, the operator of ThaiTV3, enjoyed second-quarter profit rises of 23 per cent quarter-on-quarter and 14 per cent year-on-year to Bt1.25 billion. 
BEC hiked its billing rates on selected programmes in March and continued to upgrade the quality of both prime and non-prime contents. By showing matches of the Euro tournament live in July at night, ThaiTV3 could also increase revenue during non-prime hours, it said.