Thursday, May 11, 2006

MCOT Thailand, Profit Up

MCOT still enjoys impressive revenue growth in first quarter

BANGKOK, May 9 (TNA) – From its own web site, the MCOT Public Company Limited (MCOT) said the company continued to enjoy impressive revenue growth in the first quarter of this year, according to the company’s president Mingkwan Sangsuwan.

Delivering the first-quarter performance result of MCOT, Mr. Mingkwan said on May 9 that the company registered net profits of 316 million baht, up 25 per cent from 252 million baht in the same quarter of the previous year despite political tensions and the rising fuel costs.

“Last year’s profit base is quite high. So, the profit growth of more than 10 per cent is considered very good. We achieve the impressive growth because we can differentiate our character and have a mixed marketing strategy. More importantly, we get ads from state agencies as we are 77.28 per cent owned by the Finance Ministry,” he said.

The overall revenue earned by the company in the first quarter enjoyed growth for the fourth consecutive year with 946 million baht, up 16 per cent, he said.

Of this, 580 million baht stemmed from its television station--TV Channel 9 or Modernine TV.

Such revenue grew by 10 per cent since MCOT shared a production of TV programs and produced certain ones by itself.

The company’s participation in the TV production had made its programs popular, which led to more revenue from advertisements, he noted.

The ads-based revenue is 65 per cent from private companies and 35 per cent from state agencies.

Revenue earned by radio stations totaled 177 million baht, up 69 per cent, since the company managed radio frequencies by itself.

The company targeted to earn an average of 15-20 million baht in monthly revenue from operating each radio station.

Operating expenses in the first quarter totaled 524 million baht, up 9 per cent from 477 million baht in the same quarter last year.

Mr. Mingkwan believed the company would continue to enjoy a two-digit growth in the second-quarter operating performance because all political parties and the Election Commission of Thailand (EC) are set to use the printing and electronic media for political campaigns on the eve of the fresh election ordered by the Constitutional Court.

As well, MCOT planned to adjust its TV programs in preparation for the World Cup tournament and reshape its modern radios in the second phase.

In June, he said, MCOT would present a special documentary named “The King” produced by Panorama Worldwide Co. to honor His Majesty the King.

All revenue will be offered to the beloved monarch without any expense cuts.

Mr. Mingkwan added that foreign investors had expressed interest to invest in MCOT shares and the Thai stock market in the country's recent roadshow in Scotland.

They viewed there is much room for the Thai bourse to grow, while prices of most stocks on the market remain low when compared with other markets in the region.

He conceded that some foreign investors had slowed their investment on concern of political uncertainties in Thailand, but believed foreign funds would be back to the country when the political situation returns to normal.

Source: http://etna.mcot.net/query.php?nid=21629

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