Adamas turns focus to TV production

Adamas Incorporation Plc will expand TV programme production next year to reduce dependence on concert organising, which has been hit hard by economic and political uncertainties.The company will invest 100 million baht in TV business expansion next year, with half for production and the balance for marketing and promotion. It expects to generate at least 150 million baht from TV.

Mr Nuttavut (seated) and Mr Ratt say that sports programming should be seen as an appealing vehicle for attracting advertisers.

"We feel this business is not secure enough even if one big concert can generate over 100 million baht. This year, we have organised only one concert, down from three or four on average in years past," said CEO Nuttavut Manosuthi.

Adamas joined the TV business in July after spending one million baht to buy shares in Extra Large Co, which became its TV production base. Its subsidiary Adamas World is responsible for TV programmes, the first of which was broadcast on Sept 1 on T Sports Channel. The company got a four-year contract from the Sports Authority of Thailand (SAT) to supply 60% of the programming for the channel.

Ratt Aksharanugraha, CEO of Adamas World, said more Thai people were shifting to cable and satellite TV and viewers could watch T Sports Channel on TrueVisions and through satellite receivers without any surcharge. Sports content also attracts product manufacturers who target sports-loving customers.

"Negotiations are under way with many major manufacturers. A contract with at least five big players in the automobile, energy drink and drinking water sectors is likely to happen next year. Our fee for commercials will be about 20,000 baht per minute," Mr Ratt said.

In 2010, the company will broadcast live local tournaments such as the Thailand Premier League and the Volleyball Thailand League. It will use the SAT network and connections to woo advertisers and sponsors.

Mr Nuttavut said having a media outlet facilitated public relations activities.

"The most important thing is sports are rarely affected by politics. Sports spectators and local tournaments remain on schedule despite political problems," he said.

In the future, Mr Nuttavut noted the TV business would become a secure source of income and a new pillar for Adamas. Income from concerts would be supplementary.

In the first nine months of this year, Adamas reported a net loss of 3.88 million baht, compared to a net loss of 25.74 million in the same period last year. Adamas World recorded a net loss of 12.29 million baht, compared to a net loss of 38.46 million a year earlier.

Adamas shares closed yesterday on the Market for Alternative Investment (MAI) at 1.25 baht, up nine satang, in trade worth 4.25 million baht.