NMG posts Q1 profit as ad revenue rebounds
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NATION MULTIMEDIA GROUP turned in a 14-per-cent gain in first-quarter net profit to Bt12.9 million as advertising revenue continued to improve from new TV contents and activities through its two new studios.
Duangkamol Chotana, CEO of NMG, said last week the economy had substantially slowed down in the first three months, but the company managed to bump up its profit, however slightly, compared to the same quarter of last year thanks to the uptrend in advertising spending by ad agencies and firms.
Sales and service revenue increased by 26 per cent, driven by the rise in overall advertising sales, which surged by 43 per cent in the quarter.
Ad revenue for print media climbed by 16 per cent.
Ad revenue for TV and radio advanced by 11 per cent, mainly from digital TV channels Nation 22 and NOW/26, which started broadcasting on April 25 of last year.
Ad revenue from new media dropped by 9 per cent.
Sales of print media were off 7 per cent as consumer behaviour changed. Sales of pocketbooks and children’s books also dropped by 14 per cent.
Revenue from transportation services and education improved by 19 per cent.
Total expenses shot up by 30 per cent due to the start-up of the digital TV business under the management of the group, comprising both digital TV channels, which are in their first year of operations.
“From 2014 to the beginning of this year was the time for the company to invest in our digital TV business,” she said.
Nation TV opened its studio at The Coast Bang Na in March, while NOW/26’s studio will be launched in the heart of Siam Square by the end of this month. The strategic location in downtown Bangkok will allow NOW@Siam to also act as a venue for hosting attractive events that connect with the young generations.
The company would focus on its policy to strictly control expenses. Both digital TV channels will not need much more expenditures, so the company can greatly improve its profitability.
The future is looking up, with higher ad revenue, more proactive campaigns and activities planned by the company and solid rebound of the economy, she added.
