More ad income, lower operating costs boost NMG 2013 net profit
February 19, 2014 00:00 By THE NATION
NATION MULTIMEDIA GROUP (NMG) yesterday reported a 2013 net profit of Bt251.72 million, an increase of 49 per cent over the previous year's operations, on higher advertising revenue and lower operating costs.
Meanwhile, the listed company’s board has approved a dividend payment at Bt0.02 per share, totalling Bt66 million, to be paid on April 30.
The list of shareholders entitled to receive the dividend will be disclosed on March 4, after which the dividend payment will, if approved, be finalised at the annual shareholders’ meeting.
NMG president Duangkamol Chotana said the company and its subsidiaries had filed the audited operating results for last year with the Stock Exchange of Thailand.
Revenue came in at Bt3.06 billion, slightly less than the Bt3.1 billion generated in 2012. The company reported expenditure of Bt2.93 billion, down 4 per cent from the Bt2.81 billion reported for the previous year.
NMG posted a pre-tax operating profit of Bt322.88 million. Net profit, after deducting Bt71.16 million in tax, rose 49 per cent to Bt251.72 million, from the Bt169.05 million in net earnings generated in 2012.
The company reported 2-per-cent lower revenue from sales and services last year, due to an 8-per-cent fall in newspaper sales amid a 4-per-cent rise in advertising income.
The ad-income rise came via a 3-per-cent increase in revenue from print media, television and radio, and a 9-per-cent rise from new media channels, as well as income from educational services, which commenced in March 2012.
NMG reported a 3-per-cent decline in operating costs for last year, following a continuation of effective cost-control measures.
Meanwhile, Tisco Securities yesterday commented on NMG’s two upcoming digital-TV stations: Nation Channel, for news coverage, and the NOW variety channel, which will focus on content for the “new” generation.
It said that for weekdays, news would account for 45 per cent of airtime, variety for 37 per cent, and money/finance for 18 per cent.
At weekends, the airtime breakdown will be 60 per cent for variety programmes, 32 per cent for news and 8 per cent for money/finance.
Tisco said NMG successfully bid Bt2.2 billion for the digital-TV variety channel, and had allocated Bt150 million for investment in content. NMG expects to incur losses for the first two years of operations and profitability from the third year onwards.
As for the advertising revenue target, NMG will focus on brand image, targeting people in working-age groups with considerable purchasing power. Hence, ad rates will be relatively higher than the general-client target groups, said the securities house.
NMG expects the NOW variety channel to generate about 3-4 per cent, or Bt710 million-Bt950 million, of overall variety-channel ad revenue.
The company projects losses of 11 per cent and 7 per cent respectively from the new channels in the first two years of operations, before profitability from the third year onwards, said Tisco.