BEC World Plc, the operator of Channel 3, will not increase its revenue and net profit this year due mainly to the lingering economic slowdown, which has affected advertising spending.
"If the economic situation is going to be weak and fragile like this, it's difficult to see full-year growth," said vice-president for finance Chatchai Thiemthong.
In the first half of this year, BEC saw its net profit plummet by 35% year-on-year to 1.49 billion baht, while its revenue totalled 8.26 billion, up 6%. About 80-90% of revenue came from Channel 3.
Mr Chatchai said the economic downturn had caused many companies to slash their advertising budgets.
According to Nielsen Thailand, ad spending on analogue TV in the first seven months went down 8.7% to 39.2 billion baht.
However, ad spending on 24 new digital TV channels reached 14.1 billion baht, compared with only 2.98 billion last year.
BEC now operates digital channels Channel 3 HD, Channel 3 SD and Channel 3 Family. Its analogue Channel 3 has broadcast all programmes on Channel 3 HD.
The company must pay licence fees for the three digital channels, so its gross profit margin dropped to 35.5% as of June 30 from 43.1% at the end of last year.
"Competition in TV business is getting tougher and advertisers have more choices, and ad airtime rates at new digital channels are still cheaper than at Channel 3," an analyst said
Bualuang Securities predicts BEC will see its 2015 revenue decrease by 5-10% from 16.38 billion baht last year.
Mr Chatchai said the migration to broadcast analogue Channel 3 in the digital system had cut its viewers by 10%. Viewers can still watch Channel 3 through many platforms including satellite, cable and digital TV.
"The era of digital TV has just started and it has a long way to go. The business will rely on many factors including the subsidy coupon scheme and clear rules and regulations," he said.
Mr Chatchai said the company will continue to invest in content production such as soap operas and game shows as it will help draw viewers. Its Channel 3 SD has many repeated programmes from Channel 3 HD
BEC shares closed yesterday day on the SET at 32.25 baht, up 25 satang, in trade worth 94.4 million baht.