2Q20 Results Meeting & 2H20 Highlights 14 August 2020 Virtual Conference
2Q20 Performance Summary
Quarterly Financial Results ▪ 2Q19 - 2Q20 Revenue and GPM (THB mn, %) -7%YoY -15%QoQ 56% 53% %GPM 44% 44% • Highest record 41% commerce revenue 985 from higher of 900 895 887 833 every sales channels 109 Music & Others Music & Others 96 26 • Lower cost of CH8 174 181 221 Media 376 262 Media 270 250 from reductions in content cost, license, 586 542 Commerce 500 465 443 Commerce USO and MUX fees 2Q19 3Q19 4Q19 1Q20 2Q20 Net Profit and NPM (THB mn, %) +14%YoY -42%QoQ 19% 13% %NPM 11% 10% • A rise in net profit 186 7% from higher GPM 109 95 92 and well-managed 66 expenses 2Q19 3Q19 4Q19 1Q20 2Q20 3
6M Financial Results ▪ 1H19 vs 1H20 Revenue and GPM (THB mn, %) -1%YoY • Additional media 54% %GPM revenue from 45% content licensing 1,829 1,818 without additional cost Music & Others Music & Others 175 135 • Lower cost of CH8, 597 549 Media Media radio and music in proportion to a decrease in each 1,105 1,086 Commerce Commerce revenue 1H19 1H20 Net Profit and NPM (THB mn, %) +44%YoY • A rise in net profit 16% %NPM from higher GPM 11% and lower finance 295 cost from 205 disappearance of deferred interest 1H19 1H20 4
Commerce Performance YoY : +8% Key ey Highlights QoQ : +17% (Revenue, THB mn) Improved inbound & outbound sales • 68% 68% %GPM 66% 65% 64% Leverage on momentum by 13%QoQ from growing 586 expanding 542 customer to 1.4m people, coupled with sales 500 customer base & 55 465 channel expansion in Q1-Q2 Online & Others 443 65 sales channels 29 36 35 270 242 Outbound 239 239 A fully 217 Predictive Dialing System (PDS) adopted more • implemented precisely to fully enhance efficiency of the call software tool center system in maximizing customer contact 261 Inbound 236 231 191 190 2Q19 3Q19 4Q19 1Q20 2Q20 “ RS Mall Mid Year Super Sale”, another grand • Effective sales promotion continued to boost up the sales marketing efficiency despite the market downturn campaign and promotion 1.4M customers • High GPM at 68% showing the company’s High gross ability to manage its overall product margin combination that most profitable and offering maintained products that specifically address health care amid Covid-19 situation 5
TV Performance YoY : +3% Key ey Highlights QoQ : -41% (Revenue, THB mn) 36% • 2Q20 TV ADEX contracted as a result of A huge drop in 4% Covid-19 pandemic and weak private TV ADEX -26% 336 -33% consumption. However, people have had to %GPM -53% spend more time at home, resulted in an unchanged of the number of TV viewers 199 209 193 174 Satellite TV 336 Adaptability of Channel 8’s sales and content • Unmatched 204 198 production approaches, including content 188 CH8’s 170 management in international markets and on performance other online platforms resulted in similar 2Q19 3Q19 4Q19 1Q20 2Q20 quarterly income of Channel 8 during 2019 Content production cost plunged over 25% Effective cost • compared to quarterly cost in 2019 from controls & benefits content cost management and lower operating cost benefited from license fee waiver, a reduced rate of annual contribution to USO fund and a ceasing of MUX fee since June 6
Radio Performance YoY : -68% Key ey Highlights QoQ : -42% (Revenue, THB mn) • “ COOLfahrenheit ”, No.1 radio station for Easy 81% Radio media 78% Listening category, showing a decrease in 72% 70% industry shrank %GPM revenue in accordance with overall industry 76 and no 57% 70 and no activities for listeners during Covid-19. activities-linked 61 However, both popular “COOL Outing” and 21 Event 23 “Ink Eat All Around” activities have resumed in 19 39 Jul 23 6 55 47 Media 42 33 “ COOLanything ” new feature under the 23 • Turn online concept of “Enjoy music and shopping in one music fans into 2Q19 3Q19 4Q19 1Q20 2Q20 app”, developed to support the commerce customers business Start in Q3 7
Music & Others Performance YoY : -73% Key ey Highlights QoQ : -76% (Revenue, THB mn) • Main revenues from YouTube, music 66% %GPM 64% 64% 62% Online- 55% downloading and to license music catalogue to generated bolster income streams 181 revenue 174 109 98 88 96 • A ceasing of events and concerts during Covid- Preventive 35 41 19 measures causing a decline in other revenue Event & Concert measures 26 86 83 implemented 74 Music 55 2 24 for Covid-19 2Q19 3Q19 4Q19 1Q20 2Q20 8
2H20 Highlights
Entertainmerce Strategy RS GROUP Commerce Media | Radio Music Media | TV REACH 5M 32M subscribers & 8M 4M 9M followers (1.4M Customers) Age 40+ Age 25-44 Age 35-55 Age 18-50 Urban & Rural 70% BKK 65% Urban 70% Nationwide 10
Commerce Business Highlights Content marketing through “Storytelling” Campaign & Promotion 2x Inbound sales uplift 11
Commerce Business Highlights Product Lineup Technology Adopted Partner Fashion FMCG Home & Living S.O.M. S.O.M. DTX Probiotics Probio-10 S.O.M. Meal Multiplus Replacement Collagen Customer Frequency REJU Real S.O.M. Bird Nest OVOMOV Drink 1.9 >> 2.5 x/Year 1.4 >> 1.6 M S.O.M. Choles +14% +32% >20 SO per month 12
TV Business Highlights New Programs TV Entertainmerce Programs Expected THB 50m from licensing Expected THB 1m in revenue per slot to be booked in 2H20 13
Radio Business Highlights Lifestyle Online Shopping No. of active listener : 150K per day Product : Lifestyle & Gadget Target customer : Age 25-44, BKK 65% Storytelling : By COOLJ To boost online sales by 80%YoY 14
Music Business Highlights To turn >30M music fans into customers, starts in Oct 15
RS Investor Relations +662 037 8125-6 http://www.rs.co.th/investor.html ir@rs.co.th https://www.facebook.com/RSInvestorRelations/ https://twitter.com/rs_ir ir_rs
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