SET-listed RS Plc, one of Thailand's biggest entertainment providers, expects to double its net profit to nearly 700 million baht this year with the rise of digital TV.
Chief executive Surachai Chetchotisak (centre), with chief financial officer Darm Nana (right) and chief operating officer Pornpan Techarungchaikul, predicts RS's 2015 net profit will set a record.
The company plans to generate overall revenue of 4.6 billion baht, with 80% coming from media business and 10% each from music and show business.
Net profit in 2015 is expected to set an all-time record, with the net profit margin approaching 15% or 690 million baht.
"We have fully turned into an integrated media company after three years of preparation," chief executive Surachai Chetchotisak said.
Last year, digital Channel 8 generated 1 billion baht for RS, contributing 40% of total revenue. And while the channel costs 150 million baht in annual licence fees, it could break even within the first year of operation and generate a modest profit.
This year, RS will set aside 1.3 billion baht for broadcasting business, of which 1 billion will go to developing TV content and 300 million will pay for broadcasting and production equipment.
The 30-year-old entertainment company has revised its corporate strategy as it adapts to changes in the media business.
Adjustments in content, customer service, staff management and branding will push RS forward as a full-scale media enterprise and leader in local television.
"We have proved we are a game changer," Mr Surachai said.
Channel 8 is set to secure the third-place rank among all 27 TV channels in Thailand this year after placing fifth in 2014.
The channel has raised its advertising rates to 200,000 baht a minute from 70,000 baht as viewership grows.
RS estimates 2014 revenue at 4.5 billion baht, missing its 5-billion-baht target due to a lower revenue contribution from the Fifa World Cup.
Other businesses did well last year, with significant growth in radio and satellite TV even as rivals were shutting down their operations.
The broad-based growth reflects RS's understanding of how to create content to suit each target group and channel.
Mr Surachai said RS would focus less on sports content after revenue from such programming failed to meet expectations.
Last year RS, the broadcast rights holder for the World Cup, agreed to air all 64 matches on free TV after the military junta intervened in a bid to return happiness to Thais.
The disruption altered RS's business plan, and sales of World Cup set-top boxes were ultimately scrapped.
"Even though we're less interested in sports content, we are still keen on bidding for some sporting events if the price is not too high," Mr Surachai said.
This year, La Liga Spain 2015-18, English Premier League 2015-18 and Fifa World Cup 2019 will open the bidding for their broadcast rights.
RS shares closed yesterday on the SET at 17.40 baht, down 10 satang, in trade worth 99.9 million baht.