SET-listed Workpoint Entertainment Plc, operator of Workpoint TV, has diversified into the consumer goods sector to reduce the risk of relying too heavily on its core television business.
According to Dhanasak Hoonarak, the company's chief business development officer, Workpoint recently entered into a cooperation agreement with SET-listed beverage company Sappe Plc, the manufacturer of drinks under the Sappe brand, to set up Wope, a new joint venture company aimed at leveraging the potential of both firms.
Workpoint's media programming and communication channels cover all platforms, both offline and online, that can access people of all genders and ages nationwide.
Established on Aug 10, 2022, with registered capital of 50 million baht, Wope is 60% held by Sappe Holding (Thailand) Co, a Sappe subsidiary, and 40% by Thai Broadcasting Co (THB), a subsidiary of Workpoint.
"With the capability of both companies, which boast expertise in different areas, I believe that this cooperation will result in the creation of new products that will excite consumers more than ever," said Piyajit Ruckariyapong, chief executive of Sappe.
Adisak Ruckariyaphong, vice-chairman of Sappe, said his company would take charge of product innovation throughout the supply chain to arrive at unique and differentiated products and deliver these to customers domestically as well as in Cambodia, Laos, Myanmar and Vietnam.
Workpoint will be in charge of communications and marketing to reach customer groups and boost interest in products through various communication tools.
Surakarn Sirimothya, Workpoint's chief financial officer, said Wope expects to gain sales of 200 million baht in 2022, with the figures projected to increase to 300-400 million baht within the next few years.
According to Mr Surakarn, Workpoint has resumed its expansion into non-TV business after it stopped selling Let Me In BEAUTY skincare products 10 months ago.
Apart from Sappe, Workpoint is talking to two partners about expanding its non-TV ventures in order to offset the television business, which is expected to see flat growth this year because international companies have slashed their advertising budgets.
Workpoint expects its revenue to be 2.2 billion baht this year, down from 2.5 billion baht in 2021.