Nation Multimedia Group still tuned in a net profit last year, despite all the economic and political difficulties, earning Bt64.5 million thanks partly to launching digital TV ventures and nimbly fine-tuning its business.
The group expanded its television business by launching two new-generation digital TV channels - NOW on Channel 26 and Nation TV on Channel 22. Even though the group's print business started facing saturation, its TV business surged 37 per cent last year.
NMG's strategy for this year is to promote a good balance between its print and television businesses by maintaining its revenue base from print media while accelerating the growth of its digital TV channels.
"Our new TV studios for Nation TV at The Coast Bangna, and for NOW at Siam Square, will be fully operational in the second quarter of this year. The new studios will allow our digital TV channels to be closer with individual viewers through various activities, which will happen very soon," NMG president Duangkamol Chotana said last week.
The group's 2014 net profit declined 74 per cent from Bt251.7 million in 2013 due to the economic slowdown, domestic political problems and the group's investment in the two digital TV stations.
"Media and adverting businesses suffered political difficulty throughout last year. NMG's total revenue, however, dropped by only 4 per cent. The group was burdened by 3 per cent higher expenses from investing in the two digital TV channels," she said.
The group achieved Bt824.40 million in revenue in the fourth quarter alone, up 6.7 per cent from Bt772.40 million in the third quarter.
"Despite the economic slowdown, which ran nearly throughout last year, we saw a positive direction in the fourth quarter.
"Despite the negative factor from the local political problem not yet being fully settled, consumer confidence started rebounding and the economy recovered gradually. Earnings from media and advertising are improving in the same direction," she said.
Last year was a year of transition for NMG due to the birth of the group's two digital TV channels, which sharply changed the structure of its ad revenue.
The group posted Bt1.99 billion in ad revenue in 2014, of which 42.3 per cent or Bt845.1 million was from the digital TV business. In 2013, the contribution from TV was only 31.6 per cent. The advertising contribution of the print business dropped from 57.8 per cent in 2013 to 46.1 per cent last year.
Ad revenue from the group's TV business soared 37 per cent in 2014.
"Both digital TV channels have greatly impacted the business structure of NMG. It reflects not only the change in revenue structure, but also the flexibility of our organisation to any change.
"Despite the saturation of the print business, our group is able to adjust to cater to the new digital TV business. It helps to drive rapid growth in our overall TV business even from the first year," she said.
The group's 2015 business plan focuses on maintaining the revenue base of its print business, while accelerating the growth of digital TV.
The group will also concentrate on the development of valuable TV content to serve higher demand of viewers, and to fully build brand awareness of its two digital TV channels.