3Q15 Analyst Meeting - listed companygrammy.listedcompany.com/misc/PRESN/20151120-grammy...2015/11/20 · THB 173.5 Million 46.0% - 3Q15 Revenue Continue adding magnet contents especially

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


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



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%


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


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



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



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%



- 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%


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


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


Digital TV Business


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


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

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOqk95aGmckCFQtZjgodSGgCvg&url=http://www.khajochi.com/2015/09/10-things-you-should-know-before-hormones-the-series-3.html&bvm=bv.107763241,d.c2E&psig=AFQjCNF1M_Ufudf_kN4OVpxsaCu2Zg4Vfw&ust=1447904335382818




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


News TVR 1.94

Source : AC Nielsen


Digital TV Business


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


Digital TV Business


Sincere and Sassy “FUN EVERY DAY, TOGETHER ALL THE TIME”

“Entertaining Drama & Great Fun premiered at 8 pm”

Game show Reality / Variety


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


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


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


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


2014 2015




0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900

1.000


2014 2015

ALL 14-25| MON- SUN | PRIMETIME 18:30 – 22.:29

ALL 14-25| MON- SUN | ALL TIME 06:00 – 23.:59



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


2014 2015




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


2014 2015

GREATER BANGKOK | MON- SUN | PRIMETIME 18:30 – 22.:29

GREATER BANGKOK | MON- SUN | ALL TIME 06:00 – 23.:59



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


2014 2015




0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900

1.000


2014 2015

UPC URBAN | MON- SUN | PRIMETIME 18:30 – 22.:29

UPC URBAN| MON- SUN | ALL TIME 06:00 – 23.:59



Upcountry Rural

0.0000.2000.4000.6000.8001.0001.2001.4001.6001.8002.0002.2002.4002.600


2014 2015




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


2014 2015

UPC RURAL | MON- SUN | PRIMETIME 18:30 – 22.:29

UPC RURAL | MON- SUN | ALL TIME 06:00 – 23.:59



Regulatory Update

Rating License

Favorite Channels

MUX Coverage

Subsidized Coupon

HD on Satellite

Lawsuit against NBTC


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

http://www.gmmgrammy.com/[email protected]

Documents

3Q15 Analyst Meeting - listed companygrammy.listedcompany.com/misc/PRESN/20151120-grammy...2015/11/20 · THB 173.5 Million 46.0% - 3Q15 Revenue Continue adding magnet contents especially