Monday, August 26, 2019

RS growth in Q2 ‘significant’

Aug 09. 2018
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By The Nation

2,578 Viewed

Darm Nana, CFO of RS Public Company Limited, said the company advertises and presents products on its strong platforms, such as Channel 8, satellite TV and COOL radio station, reaching 15 million people a day.

The company no longer relies on traditional channels, but rather focuses on communication and meeting the needs of its consumers, using new models that offer a competitive edge over others, he said.

Its performance has witnessed growth in both revenue and profits. In Q2 of 2018, it earned Bt955 million, representing 12 per cent growth from the same period last year. 

Its H1 income is Bt2 billion, a 20 per cent increase from the previous year. 

Net profit in Q2 was Bt172 million, a 230 per cent increase, while its half-year net profits are at Bt274 million, 177 per cent growth. 

The company is confident that its total 2018 performance will reach an all-time high, proving the success of its new business model, which seamlessly fuses its commercial and media sides, Darm said.

Its Multi-platform Commerce (MPC) is making great earnings. In the 2nd quarter of this year, it generated Bt504 million, a 68 per cent increase from the same period last year, thanks to the selection of high-quality products, great value for money and excellent service. 

The Health and Beauty and Home and Lifestyle products such as appliances, household items, clothes and accessories have been doing well since the launch in April. 

RS also enjoys growth from its media platforms such as Channel 8, which has strong content and leading ratings in the country.

For the MPC business in the second half of 2018, it has joined forces with strategic partners to strengthen the business and achieve success faster to generate profits and income sustainably. 

There will be new SKUs in the skincare, hair care and supplementary food categories, as well as Home and Lifestyle products, marketing services and insurance and others. 

More products and services have been added to increase its business opportunities. The management of its database, which has over one million customers in total, as well as its strong Call Centre team, which has more staff and higher success in closing deals, also attract new partners. 

Many businesses are now interested in selling their products on RS’ telesales channel.

Channel 8, meanwhile, has introduced new content in all genres, such as Indian series, Thai dramas, news and boxing programmes, to reaffirm its concept of “In-Depth Content, Intense Flavours”. 

The timing is just right as advertising starts to flourish once again. 

The new content plan attracts viewers nationwide, resulting in sky-high ratings. Magnetic contents in Q3 are two new Indian series “Ganesh” and “Iss Pyaar Ko Kya Naam Doon”. 

“Ganesh” is a multimillion-baht fantasy-action series with amazing CG and has the highest ratings in India. “Iss Pyaar Ko Kya Naam Doon” is a romantic drama that has won the hearts of Indian viewers and received 13 awards, including Best Actor for Barun Sobti and Best Actress for Sanaya Irani.

Additionally, RS has been invited by securities companies to meet investors both in Thailand and overseas. Recently it attended Thailand Focus to meet Thai corporate investors and investors from Japan, Hong Kong and Singapore. 

From Q3 onward, the company will travel to share its success story of changing from retail to MPC. It is confident that the roadshow will be as well-received by investors as always. 

After the roadshow, there will be more long-term corporate investors, adding stability to its share price. This guarantees the company’s credibility.

“On August 8, we asked the board of directors to approve an interim dividend from H1 of Bt0.25 per share, a total of Bt242 million. This signifies our liquidity and financial strength, as we are able to pay an interim dividend to our shareholders,” said Darm.

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