3Q15 Analyst Meeting
20 November 2015
GMM GRAMMY PUBLIC COMPANY LIMITED 2
Agenda
3Q15 Financial Performance
Digital TV Business
• Current Magnet Program
• Channel Rating
• Regulatory Update
GMM GRAMMY PUBLIC COMPANY LIMITED 3
Financial Performance
- Underlying the growth of music group this quarter was fuelled by digital music marketing with higher contribution from SMS service Song2U, while YouTube viewers and revenue sharing for music & non-music contents kept rising and reaching 19MB per month, with a total of THB 53MB for 3Q15 - Showbiz performance, though maintained at the same level as last year, somewhat slowdown after the blast happened at Ratchaprasong intersection. During 4Q15 upcoming events incl “Potato”, “Big Mountain Music Festival”, “Jimlai Festival”, etc. - Copyrights revenue trended upward with music rights becoming increasingly used in popular TV singing contest for many digital TV programs - Physical sales dropped with a total number of 310 albums as of 3Q15
138 153 166
434
234 164
46 45 48
55
56 54 18 31
21
27 37 114
119 115
139
175 196 185
181 199
210
208 155 117
80 28
7
20
16
1Q14 2Q14 3Q14 1Q15 2Q15 3Q15
Others
Physical
Digital
YouTube
Copyright
Showbiz
GMM GRAMMY PUBLIC COMPANY LIMITED 4
Financial Performance
Music & Digital 2015 Turnaround Revenue Growth
THB 645.1 Million 3Q15 Revenue - More albums & releases of new singles
- Increase Youtube sharing & digital music marketing
- Showbiz bounces off high activities & concerts throughout the year
- Full-year revenue from MuangThai GMM Live House (Opened in Oct-14)
5.7% Y-o-Y % Growth
5.7%
GMM GRAMMY PUBLIC COMPANY LIMITED 5
46.0%
Y-o-Y % Growth 19.2%
3Q15 Normalized Consol ONE
2Q15 Normalized Consol ONE
- Revenue for ONE digital TV continue to grow 31.4% Q-o-Q with top-rated ranks from series of Prime time drama on air this quarter “Ban Lang Mek “Tawan Tat Burapa”, with line-ups of new hits variety shows targeting at mass audience i.e. “Suk Wan Duan Pleng”. During 4Q15, drama airtime will be expanded throughout Sat-Sun
- Normalized 3Q15 revenue by taking into account the disconsolidated One Enterprise resulted in an improved performance by 19.2% Y-o-Y
- Revenue stream from analog free TV platform decreased in accordance with the transition towards digital free TV platform. The pull back sitcoms planned to broadcast in 4Q15 were expected to gain high popularity among fanbase incl. “Heng Heng Heng”, “Phu Kong Chai Sanae”, “Baan Nee Mee Rak”, “Mue Prab Kook Kook Koo”
- Year-to-date media advertising was still depressed by economic recession, with seasonality impact witnessed during 3Q15
Financial Performance
Digital TV – GMM ONE 2015 Gearing towards Top-notch DTT Channels
THB 173.5 Million 46.0% 3Q15 Revenue
- Continue adding magnet contents especially drama & sitcom in primetime
- Expand viewers’ base in outskirts & rural area
- Create brand awareness i.e. billboard, roadshow
354 351
248
73
218
98 153
41
47 49
44
21
21
18
20
20
30
125
245 322
1Q14 2Q14 3Q14 1Q15 2Q15 3Q15
ONE DTV
Others
Free TV
GMM GRAMMY PUBLIC COMPANY LIMITED 6
Financial Performance
Digital TV – GMM 25 2015 Gearing towards Top-notch DTT Channels
- Ramp-up revenue for Digital TV GMM25, with rising trend after the launch of new programs in prime-time slots under slogan “Entertaining Drama & Great Fun premiered at 8 pm - GMM 25 joined LINE TV with similar target viewers by broadcasting popular contents i.e. “Club Friday the Series”, “Ugly Duckling” on LINE TV shortly after the first run, with upcoming plan to co-produce for exclusive broadcasts on LINE TV, which enhanced copyright revenue & broaden viewers’ base to on-line platform that can further attract media agency as proven by several GMM25 contents touching over 100 million viewers record
- Revenue from radio media rose 8.4% Q-o-Q, but dropped 11.7% Y-o-Y in line with declining media industry spending
- Showbiz dropped after the blast at Ratchaprasong intersection, despite big concerts showed including “Big Hero”, “Green concert# The Lost Love Songs”
- Satellite-FreeTV revenue declined from previous year, following the industry transition towards digital TV
3Q15 Revenue THB 408.5 Million 2.3%
2.3% Y-o-Y % Growth
- Stay ahead with series of fresh and differentiated contents
- Showcase prime-time programs under slogan “Entertaining Drama & Great Fun premiered at 8 pm”
- Provide total content solutions across multi-platforms to enlarge viewer base while maximize revenue & branding
0 1 4 44
104 106 90 159 158 102
100 103 112
143 188
128
153 166
28
15
29
64
40 17
53
5
35
19
13 13
1Q14 2Q14 3Q14 1Q15 2Q15 3Q15
Others
Showbiz
Radio
Free TV
GMM 25 DTV
GMM GRAMMY PUBLIC COMPANY LIMITED 7
Financial Performance
Home Shopping
- Despite overall depression in consumer confidence and purchasing power, O-Shopping maintained an average daily sales at 5.1 MB
with rising customer base up to 790k
- Plan to penetrate online shoppers “Oshoppingtv.com” together with mobile application showcasing more variety of product lines up to 1,000 items with high security payment system
- Launch special promotion twice a month and partner with Linepay, Bank Credit Card for co-promotion
- Initiate new project : Master Antenna TV (MATV) in connection with high rise condominium broadcasting system to penetrate O-shopping channel for residential viewer
2015 High Double Digit Revenue Growth
3Q15 Revenue THB 450.6 Million
- Differentiate with variety of products
- Expand through internet channel
- Daily sales target approaching 5 MB per day by yr-end 2015
- Regulatory spotlight and supporting policy
48.4%
GMM GRAMMY PUBLIC COMPANY LIMITED 8
Financial Performance
- Despite new movie “Freelance” generated box office revenue by THB 88 million together with substantial copyrights revenue in ASEAN market, 3Q15 revenue from movie slightly dropped 2.1% in line with overall local film industry got impacted from political unrest, economic recession and strong competition from Hollywood blockbusters
- In 4Q15 GTH prepared to premiere new teen movie “May Who?” directed by famous producer “Chayanop Boonprakob” whose past achievement in “SuckSeed” was very popular. The new film “May Who?” featured Japanese comic story telling format with fantasy character and animation technique
- Other business revenue decreased in the absence of publishing group following the divestment this quarter
- Approximately 200K units were sold this quarter, lower Y-o-Y according to the shrinking volume of set-top-box sold for the whole market mainly caused by digital TV transformation
- In an attempt to stimulate sales, series of promotion were launched this quarter following the new product lines “Mini Gold” with gold prize, together with big regional event “Z super Mechanic Fin Fun Fair” across 4 provinces – Bangkok, Hadyai, Chiangmai, Khonkaen, Moreover, the Company joined Tesco Lotus presented “Exclusive Trip Around the World 2” giveaway Prague-Berlin tour package & closed out festive season with “Big Shoppers Farewell Year end” for Tesco Lotus customers to win iPhone 6S
Satellite TV Platform Movies & Others
73.7% 3Q15 Revenue
THB 239.3 Million 3Q15 Revenue
THB 102.2 Million 20.2%
GMM GRAMMY PUBLIC COMPANY LIMITED 9
Strong Financial Position
11,711 10,821 11,894 12,604 12,180
15,950 15,106
10,136 9,776
7,795 6,942 7,391
8,627 9,007
14,145 13,918
11,523
7,660 6,364 6,115
3,916 3,879 4,503
3,977 3,173 2,157 2,032
3,583 3,936 3,772 3,661
16,301
11,596
2,228 2,100
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
3,678
Financial Position Interest Bearing Debt (IBD) Ratio and Total Cash on Hand
Assets Liabilities Equities IBD
Note: Total cash on hand = Cash and cash equivalents + Current investments i.e. Fixed deposit, Trading and Debt securities
3,340
4,699 5,093
6,442 6,481
4,319
3,016 2,815 1,514 1,014
3,348 3,719 2,197
2,884 3,284 1,940 1,847 1,334 1,264
0.94 0.78 0.74
1.18 1.61
2.99 3.19
1.21
0.72 0.59 0.57
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Cash IBD: Equity
GMM GRAMMY PUBLIC COMPANY LIMITED 10
2015 Outlook
1H 2H 1H 3Q15 4Q15
Existing Business
Music 163 249 291 84 +
Others -45 -87 20 29 +
Business Progress
Home Shopping -51 -18 -20 -4 +
Pay TV -1,461 None None None None
Digital TV -158 -575 -584 -152 -The ONE Enterprise (51% Equity) -115 -112 -
Extraordinary Items
Divestment (SE-ED) + 72
Disconsolidating ONE TV + 654
Divestment (Index) + 103
Divestment (Others) + 34
Total -1,552 -430 455 -154
Unit : MB2014 2015
Profit before corporate expenses and MI
GMM GRAMMY PUBLIC COMPANY LIMITED 11
Digital TV Business
GMM GRAMMY PUBLIC COMPANY LIMITED 12
Digital Terrestrial TV Business
Theme Smart and Stylish Sincere and Sassy
Positioning • Celebrate Your Life In Style Everyday on ONE • GMM Channel is with you every step of your life and every beat of your heart
Main Target audiences • Premium Mass Audiences
• Modern Families
• Trendy Office Workers
• Young & Young At Heart
• Gen Y
• Social media savvy population
Selected Magnet Content • Pen-Tor (All-New Season)
• Star-studded Line-up of new primetime dramas
• The Star (Variety Show)
• Suk Wan Duan Pleng (Variety Show)
• All-Day Live News
• Club Friday the Series
• Drama “I Wanna Be Sup’Tar”
• GMM25 The Concert
• Red Carpet
• EFM Entertainment News
Two unique and distinct Digital TV channels to capture maximum audience exposure
No. 31 on Digital TV and No. 41 on Satellite/Cable No. 25 on Digital TV and No. 35 on Satellite/Cable
GMM GRAMMY PUBLIC COMPANY LIMITED 13
Digital TV Business CELEBRATE LIFE IN STYLE EVERYDAY Smart and Stylish
“Yours ONE…All Day, Everyday” “Hits Drama on Air at ONE”
Drama / Series
Current Magnet programs
Sitcoms
TVR 3.18
TVR 2.39
TVR 1.28
TVR 2.37
TVR 1.88
Source : AC Nielsen
GMM GRAMMY PUBLIC COMPANY LIMITED 14
Digital TV Business CELEBRATE LIFE IN STYLE EVERYDAY Smart and Stylish
“Yours ONE…All Day, Everyday” “Hits Drama on Air at ONE”
Game show / Variety Show
Morning News, Midday News, All day News, Late night News
Current Magnet programs
News TVR 1.94
Source : AC Nielsen
GMM GRAMMY PUBLIC COMPANY LIMITED 15
Digital TV Business
Current Magnet programs
Sincere and Sassy “FUN EVERY DAY, TOGETHER ALL THE TIME”
“Entertaining Drama & Great Fun premiered at 8 pm”
Drama / Series News
TVR 2.29
TVR 1.24
TVR 1.42
Source : AC Nielsen
GMM GRAMMY PUBLIC COMPANY LIMITED 16
Digital TV Business
Current Magnet programs
Sincere and Sassy “FUN EVERY DAY, TOGETHER ALL THE TIME”
“Entertaining Drama & Great Fun premiered at 8 pm”
Game show Reality / Variety
GMM GRAMMY PUBLIC COMPANY LIMITED 17
TV Advertising Spending
255 348 511 801
1,052
1,958 2,332 2,324
2,490 2,510 2,846
3,364 3,182
3,462 3,332 2,978
1,785 1,642 1,821
4,712 4,835
5,847 5,427 5,484 5,526
5,470 5,585
5,310
5,377 5,348 4,853 4,248
4,544
5,614
4,971 5,048
4,809 5,026
4,890
4,413 4,697
4,712 4,835
5,847 5,682
5,832 6,037 6,271
6,637
7,268
7,709 7,672 7,343
6,758
7,390
8,978
8,153 8,510
8,141 8,004
6,675
6,055
6,518
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15
New DTT Traditional TV
Mill
ion
Bah
t
Source : AC Nielsen
Remark: Starting from Sept onwards, AC Nielsen announced to adjust DTT reported spending by net-off discount from rate card in order to better reflect actual DTT media spending
GMM GRAMMY PUBLIC COMPANY LIMITED 18
Total Individuals - All 4+
0.0000.2000.4000.6000.8001.0001.2001.4001.6001.8002.0002.2002.4002.600
April May June July August September October November December January February March April May June July August September October
2014 2015
WORKPOINT TV CH 8 MONO 29 ONE 3 SD THAIRATH TV TRUE4U
3 FAMILY GMM 25 PPTV AMARIN TV NEW TV TNN 24 NATION TV
SPRING NEWS THAI TV MCOT FAMILY NOW TV BRIGHT TV VOICE TV MVTV FAMILY (LOCA)
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
1.100
1.200
April May June July August September October November December January February March April May June July August September October
2014 2015
TOTAL INDIVIDUALS | MON- SUN | PRIMETIME 18:30 – 22.:29
TOTAL INDIVIDUALS | MON- SUN | ALL TIME 06:00 – 23.:59
Source : AC Nielsen, Excluding former analog TV channels i.e. Ch 3, Ch 5, Ch 7
GMM GRAMMY PUBLIC COMPANY LIMITED 19
Total Individuals - All 14-25
0.000
0.200
0.400
0.600
0.800
1.000
1.200
1.400
1.600
1.800
2.000
April May June July August September October November December January February March April May June July August September October
2014 2015
WORKPOINT TV CH 8 MONO 29 ONE 3 SD THAIRATH TV TRUE4U
3 FAMILY GMM 25 PPTV AMARIN TV NEW TV TNN 24 NATION TV
SPRING NEWS THAI TV MCOT FAMILY NOW TV BRIGHT TV VOICE TV MVTV FAMILY (LOCA)
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
April May June July August September October November December January February March April May June July August September October
2014 2015
ALL 14-25| MON- SUN | PRIMETIME 18:30 – 22.:29
ALL 14-25| MON- SUN | ALL TIME 06:00 – 23.:59
Source : AC Nielsen, Excluding former analog TV channels i.e. Ch 3, Ch 5, Ch 7
GMM GRAMMY PUBLIC COMPANY LIMITED 20
Greater Bangkok
0.000
0.200
0.400
0.600
0.800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
April May June July August September October November December January February March April May June July August September October
2014 2015
WORKPOINT TV CH 8 MONO 29 ONE 3 SD THAIRATH TV TRUE4U
3 FAMILY GMM 25 PPTV AMARIN TV NEW TV TNN 24 NATION TV
SPRING NEWS THAI TV MCOT FAMILY NOW TV BRIGHT TV VOICE TV MVTV FAMILY (LOCA)
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
1.100
1.200
April May June July August September October November December January February March April May June July August September October
2014 2015
GREATER BANGKOK | MON- SUN | PRIMETIME 18:30 – 22.:29
GREATER BANGKOK | MON- SUN | ALL TIME 06:00 – 23.:59
Source : AC Nielsen, Excluding former analog TV channels i.e. Ch 3, Ch 5, Ch 7
GMM GRAMMY PUBLIC COMPANY LIMITED 21
Upcountry Urban
0.000
0.200
0.400
0.600
0.800
1.000
1.200
1.400
1.600
1.800
2.000
2.200
April May June July August September October November December January February March April May June July August September October
2014 2015
WORKPOINT TV CH 8 MONO 29 ONE 3 SD THAIRATH TV TRUE4U
3 FAMILY GMM 25 PPTV AMARIN TV NEW TV TNN 24 NATION TV
SPRING NEWS THAI TV MCOT FAMILY NOW TV BRIGHT TV VOICE TV MVTV FAMILY (LOCA)
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
April May June July August September October November December January February March April May June July August September October
2014 2015
UPC URBAN | MON- SUN | PRIMETIME 18:30 – 22.:29
UPC URBAN| MON- SUN | ALL TIME 06:00 – 23.:59
Source : AC Nielsen, Excluding former analog TV channels i.e. Ch 3, Ch 5, Ch 7
GMM GRAMMY PUBLIC COMPANY LIMITED 22
Upcountry Rural
0.0000.2000.4000.6000.8001.0001.2001.4001.6001.8002.0002.2002.4002.600
April May June July August September October November December January February March April May June July August September October
2014 2015
WORKPOINT TV CH 8 MONO 29 ONE 3 SD THAIRATH TV TRUE4U
3 FAMILY GMM 25 PPTV AMARIN TV NEW TV TNN 24 NATION TV
SPRING NEWS THAI TV MCOT FAMILY NOW TV BRIGHT TV VOICE TV MVTV FAMILY (LOCA)
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
1.100
1.200
April May June July August September October November December January February March April May June July August September October
2014 2015
UPC RURAL | MON- SUN | PRIMETIME 18:30 – 22.:29
UPC RURAL | MON- SUN | ALL TIME 06:00 – 23.:59
Source : AC Nielsen, Excluding former analog TV channels i.e. Ch 3, Ch 5, Ch 7
GMM GRAMMY PUBLIC COMPANY LIMITED 23
Regulatory Update
Rating License
Favorite Channels
MUX Coverage
Subsidized Coupon
HD on Satellite
Lawsuit against NBTC
GMM GRAMMY PUBLIC COMPANY LIMITED 24
GMM GRAMMY PUBLIC COMPANY LIMITED . 50 GMM Grammy PLACE, Sukhumvit 21 Rd. (Asoke), Khlongtoeinuea, Wattana, Bangkok 10110, Thailand www.gmmgrammy.com
Investor Relations Email : [email protected] Tel : (+66) 2 669 9936, (+66) 2 669 9952, (+66) 2 669 8071
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