Good response to share issue as NMG raises funds for digital TV

NMG last month said it planned to increase registered capital by Bt1.79 billion from Bt873.3 million by issuing 3.38 billion new shares at Bt0.53 per share, of which 1.65 billion shares will be allocated to existing shareholders at the ratio of one new share for one existing share at Bt1 each. 

The company will also issue 1.65 million warrants and certify the 82.38 million ESOP (employee stock option) warrant shares allocated for NMG executives and employees. 

NMG expects its revenues this quarter to be on par with the first quarter, which saw revenue from print adverts increasing by 6 per cent year on year, which is faster than the market’s 4 per cent. Advertising revenues from satellite TV channels in the period increased by 22 per cent and new-media channels by 21 per cent.

The company expects revenue for the whole year to rise 15-16 per cent to Bt3.5 billion from Bt3.1 billion last year.

In October, the company will bid for licences to operate three digital television channels – a high-definition channel, a news channel and a children’s channel. The company has prepared Bt2 billion of funds from its capital raising. 

The company also plans to issue debentures worth Bt1.5 billion if the bids for the licences are higher than expected. After this, the company will go on roadshows overseas, starting with Singapore next month. 

“We expect our revenues in the first and second quarters to continue increasing, despite the economic slowdown anticipated by the government. However, the growth of advertising expenditures is still on track and shows no sign of slowing down. Although there are many holidays this quarter, NMG has launched many events and activities to facilitate revenue growth, such as the event to celebrate the Nation Group’s 43rd anniversary next month,” Duangkamol said.

The company is preparing to launch a daily newspaper in Myanmar in the fourth quarter as planned, which is expected to receive a warm welcome because of the economic growth over there. NMG will own 49 per cent of the joint venture set up to publish the newspaper in Myanmar, while 51 per cent will be owned by a partner based in that country.

Adisak Limprungpatanakij, president of Nation Broadcasting Corp (NBC), said he was confident that the company’s recapitalisation would be successful.

Late last month NBC won shareholders’ approval for recapitalisation by issuing 353.74 million shares to be allocated to existing shareholders at Bt1 apiece.