Digital TV licences cause MCOT to face deficit
MCOT Public Co Ltd has disclosed its 2017 financial statements and conducted an impairment of its licenses to operate two digital TV channels and licenses to provide broadcast network and facilities, causing the company to face a deficit, even though its operating costs reduced 8 per cent.
However, the company expects profit recovery and a positive direction in 2018.
Kematat Paladesh, MCOT president, said the company has reported its 2017 financial statements ended December 31, 2016, to the Stock Exchange of Thailand (SET). Its total revenue is Bt2.73 billion, a 5 per cent decrease compared to the previous year.
The company has also recorded the impairment of its licences to operate two digital TV channels and licences to provide broadcast network and facilities. A sluggish economy that significantly affected digital TV operators and licence fee payments to operate 9 MCOT HD and MCOT Family 14 were cited as the causes of the deficit.
The impairment of the licences to operate two digital TV channels and licences to provide broadcast network and facilities valued at Bt2.54 billion, brings an imbalance between revenue and expenses and results in the deficit of Bt2.54 billion, a 236 per cent increase from the previous year. Regardless of the impairment, the company would face a deficit of Bt726 million (exclusive of VAT), which reduced 17 per cent from last year, due to its ability to control operating expenses.
In accordance with accounting standards, the impairment of assets is not considered as an actual expense for the companies. Given projected revenue, expenses, growth rate and expected cash flow that reflect operations under the current digital TV situation, MCOT management has conducted the impairment and will review key factors and indicators on a yearly basis. It is expected that digital TV operators who have struggled a financial crisis will also carry out an impairment of assets.
In 2018, MCOT will focus on adding value to its assets, especially its 50 rais of land in Rachadapisek area. The company will also seek to join hands with new partners on new business development.
“This coming April, MCOT HD will broadcast new programmes to better meet the needs of its fans,” the company said in a statement. “MCOT radio network is planning to broadcast its content into new digital platforms to attract young audiences. The company will also concentrate on cost management and operations’ improvement to enhance its efficiency.”