Flood-hit RS expects stagnant full-year growth
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Leading music and entertainment company RS expects to face stagnant growth this year after Bt200 million in revenue this quarter was washed away by the flood.
“This is the worst case in 31 years of the company,” chief executive officer Surachai Chetchotisak said yesterday.
Although RS’s radio and music business was largely spared by the flood crisis, the media and event business, which accounts for about 80 per cent of revenue this quarter, was directly hit, he said.
Shocked by the flood, many advertisers and product owners slashed or postponed advertising, while at least 12 activities including marketing events, concerts and roadshows have been cancelled or postponed since October.
RS’s media business comprises programme production for free and satellite television as well as in-store media. The satellite TV stations are Sabaidee TV, You Channel, Channel 8 Infinity and YAAK TV.
The company had expected a 6.89-per-cent rise in revenue to Bt3.1 billion from last year’s Bt2.9 billion but given this crisis, revenue should remain flat.
“Now we have to review and revise next year’s plan to cope with this challenge,” Surachai said.
The new business plan must be completed by next month for presentation to business partners, investors and sponsors in January.
Overall business will continue to slow down until the first quarter of next year, so the launches of satellite TV stations originally planned for early next year should be pushed out until late in 2012 or the following year, he said.
However, business is expected to improve in the second quarter, so all events and concerts deferred from this year should be back on schedule starting then, he said. In the second half, overall business is expected to recover fully.
The satellite TV business will be emphasised in next year’s plan because there is more room to grow in this industry, even though the business unit is likely to miss its revenue target of Bt400 million this year, Surachai said.
The company plans to launch its first sports pay-TV channel with the Spanish La Liga to broadcast soccer matches live in July after purchasing broadcasting rights until 2015.
Parts of tournaments will be aired on free TV and its Channel 8 Infinity to extend its viewer base as well as attract advertisers and sponsors, Surachai said.
With this new service, the company should enjoy positive growth next year, he added.
