JKN Global Group Plc (JKN) insists its finances and liquidity remain sound, saying none of the next bond interest payments will be missed and the company is on track to meet its revenue target of more than 3 billion baht this year.
"The bond payment rescheduling was mainly caused by a liquidity mismatch and a lack of funding sources," chief executive and managing director Jakkaphong Jakrajutatip told a briefing on Friday, referring to the announcement on Thursday that JKN cannot fully pay 609 million baht worth of debentures due on Friday.
In a filing to the Stock Exchange of Thailand (SET), the owner of the Miss Universe Organization (MUO) said it would pay 156.6 million baht, consisting of 146.62 million baht of principal and 9.98 million in interest, on Friday.
The payment accounts for 26% of the total, leaving an outstanding balance of 443 million baht on the JKN239A debentures.
"We have cash of 156.6 million baht for the bond payment. For those who will be paid later, they will receive interest for the delay and Asia Plus Securities, the bondholder representative, will contact them by Sept 11 for more details," she said.
JKN239A is the first tranche of JKN's seven series of bonds worth a combined 3.36 billion baht.
The next interest payment is due on Sept 11, followed by Oct 20 and Nov 10, 13, 15 and 24.
The other six tranches of bonds are worth 300, 578.6, 400, 800, 525 and 156.6 million baht, with maturity dates in 2024 and 2025.
"All of the next bond interest payments remain intact. We are looking at various sources of funding, with backup plans in place," said Ms Jakkaphong.
Hosting the 72nd Miss Universe pageant in the fourth quarter should allow JKN to achieve its 2023 revenue target, she said.
The content distributor and media buying company posted revenue of 1.5 billion baht in the first six months of this year, up 51% year-on-year, with net profit growing 33% to 102 million baht.
"In the second half, we expect a significant growth of revenue thanks to the expansion of our MUO business of related products and services," said Ms Jakkaphong.
JKN is introducing drinks as well as skincare and spa products. The company also diversified to the tour business, which is expected to launch in the fourth quarter.
Yuanta Securities said JKN's revenue in the first half was below its forecast, prompting Yuanta to downgrade its 2023 target.
Moreover, expansion of the MUO business and diversification requires a significant amount of money, potentially affecting JKN's liquidity, said the brokerage.
JKN expects to gain more revenue from the pageant business in El Salvador, projected at 566 million baht in the second half, up from 230 million in the first six months.