NMG net jumps 131% in 1st half on expansion, cost controls
Nation Multimedia Group's first-half net profit blossomed 131 per cent to Bt84.97 million from Bt36.74 million in the same half last year, driven by cost controls and strategic expansion, especially at the regional level.
Sales and services are set to exceed Bt3 billion this year, after surging 12 per cent in the first six months.
Total first-half advertising sales increased by 16 per cent on a 14-per-cent increase in advertising revenues from print products, 10-per-cent increase from radio and television and 57 per cent from electronic media, including Internet banners. The group’s newspaper circulation gained 2 per cent in the period.
Cost of sales jumped by 12 per cent, although transport and logistics costs declined 4 per cent thanks to outsourcing in the second quarter.
NMG will disclose tomorrow a major re-engineering of its management and editorial functions with the convergence of news desks, sales and marketing, and management, aimed at controlling costs and raising productivity.
NMG president Duangkamol Chotana said the company achieved Bt1.5 billion in sales in the first six months of this year after posting Bt2.8 billion for all of last year.
“We achieved profitability in three consecutive quarters, starting from the fourth quarter of last year, when we saw Bt32.3 million in net profit. We also earned Bt38.5 million in the first quarter of this year and Bt46.5 million in the second quarter,” she said.
The group has enjoyed growth since the flood of late last year, which dried up advertising spending by many corporations, but is now closely monitoring the global economic environment together with the European Union crisis for possible risks to its operation. However, it has yet to feel any impact.
The group wiped out all retained losses of Bt776 million on July 18, so its board is considering declaring a dividend according to the group’s policy to pay out about 65 per cent of net profit to stakeholders.
“We have seen a positive tendency for growth in the second half of this year,” Duangkamol said. “The target of 10-15 per cent for the period will be driven by our efficient management and strategic expansion, including the launch of Krungthep Thurakij TV, Kid Zone and the regional expansion project.” The group recently joined with its partner in Myanmar, Eleven Media, to start an English-version news website in Myanmar and provide news content in its newspaper there.
