NMG reduces capital for partial debt write-off

CEO Thanachai Santichaikul said that at the board of directors' meeting on Feb 27, it was resolved that the capital would be reduced from Bt1.647 billion to Bt873.3 million, or Bt1 per share to Bt0.53. Such would reduce the accumulated losses to Bt2 billion, which should be cleared later.
The board is yet to discuss if dividends would be paid for the 2011 performance. 
"The capital reduction will bolster the financial strength. This will allow us to repay debt principal by Bt200 million a year, while our long-term debt remains at only Bt500 million. In the future, dividend payment would be possible," he said.
Last year, the media firm reported the net profit of Bt104.28 million, down from the Bt155.4 million operating profit in the previous year.
Thanachai attributed the drop to a 2 per cent drop in sale, as revenue from print business dropped 11 per cent on year.  The performance was supported by a 1 per cent increase in advertising revenue: 15 per cent growth rate from the TV and radio business, against a 3 per cent drop from the print business and 9 per cent drop from the electronic media business.
"Advertising revenue dropped sharply after the tsunami in Japan in March and the floods in the fourth quarter. Then, newspaper delivery was disrupted and all events were postponed," he said.
He anticipated a better year in 2012, if no unexpected events happen. The economic recovery should boost confidence while stable politics should boost the group's revenue by at least 10 per cent.