MEDIA

The listing of Nation Broadcasting Corporation (NBC) may blaze a trail for other pay-TV operators looking for funds to upgrade to digital, said its president Adisak Limprungpatanakij.

NBC shares made their debut on the Market for Alternative Investment (MAI) yesterday, rising 4.1% from an initial public offering price of 2.90 baht to close at 3.02 baht, in trade worth 124.27 million baht. The shares peaked at 3.22 baht in early trade.

NBC, which operates the 24-hour Nation Channel, is a subsidiary of Nation Multimedia Group Plc (NMG), the publisher of The Nation and Krungthep Turakit.

"Many satellite and cable TV operators have shown their interest in listing on the stock exchange. They want to raise funds to upgrade their equipment to catch up with a rapid change in digital technology," said Mr Adisak.

NBC is also upgrading its equipment, he added.

For example, Cable Thai Holding, founded by 150 provincial cable TV operators, is eager to list on the stock market, he said. Hit Station and MV are other examples.

The satellite and cable TV business in Thailand is growing rapidly, thanks to liberalisation under the Radio and Television Broadcasting Act. About 6.3 million households are currently estimated to watch pay TV.

To serve the fast-growing industry, NBC is investing 30 million baht in a new cable channel next year. Unlike the Nation Channel, the new channel will focus on soft news and its content, including lifestyle and entertainment, will be shared with print media, he said.

NBC, which covers satellite TV, radio and new media, expects 20% growth this year. Mr Adisak hopes for better performance next year with an upturn and the opening of a new radio station.

NBC reported a net profit of 40.9 million baht in the first nine months of 2009, up 31.7% year-on-year. For the third quarter, its profit was 23.85 million baht, up from 17.99 million year-on-year. Though NBC performed well, its parent NMG lost 3.34 million baht in the third quarter, compared with a loss of 57.36 million in the same period last year.

Thanachai Santichaikul, the group CFO, said the company would see a profit in the fourth quarter from the sale of NMG shares and increasing ad revenues. Ad spending in October and November was improving, he said.