Turning point: The National Office of Electricity and Drinking Water diversifies its business from television. Look for new growth channels
Many people know ONEE stock or One Public Establishment Company Limited Very well as a fully integrated media and entertainment product that begins with the creation and production of high-quality content that includes a variety of dramas, sitcoms, series, variety shows and news along with complete distribution channels such as one31 TV channel owned by the same group of companies and GMM 25 Channel Company where the group acts as a marketing agent, and radio channels. Such as EFM, Green Wave, Chill Online, as well as online media.
Initially, the office’s main revenue generating channel was from the television business group. If you look back at the data in 2015, you will find the company’s revenue percentage from the TV business reached 93.80% before gradually declining, in 2019 it was 79.11%, in 2021 it was 49.00%, and most recently in the first nine months of 2023 reduced to only 44%.
The office is clearly trying to play the strategic game by repositioning businesses that are currently in decline, such as television, so that they are less important. Turn to generating income from other channels. Which are more diverse, such as the Internet, which is considered the new future of the media industry including an emphasis on artist management. Organizing concert and events
At a recent Opportunity Day event (November 30, 2023), ONEE revealed that it was a time when the company earned income from TV ad sales. Royalties were down significantly but there was a 24% increase in profits over the previous quarter. The reason is new revenue streams including artist management. Organize concert and events Come and help offset the impact of advertising and royalty fees.
Establishing the company’s strategy in the fourth quarter of 2023 and beyond. It will focus on diversifying its business away from television. Because the TV business is on a downward trend. The important part is artist management. Organize concert and events to support growth over the next 2-3 years
Point of view Krungsri Securities Analyze that you like ONEE’s strategy to diversify its business away from television. This is reflected in the operating results for the nine-month period of 2023, where revenue from the TV business decreased by 7% year-on-year and royalty income decreased by 36% year-on-year, representing 41% and 15% of total revenues respectively. Although television media income has not improved, the office found two positive developments. The first is that royalty income is starting to show some signs of improvement in the third quarter, and the second is that income from new businesses that the company has shifted to focus on is trending higher.
In the nine-month period of 2023, income from artist management rose 50% year-on-year, accounting for 15% of total income, while income from concerts and events rose 171% year-on-year, accounting for 11%. of total revenues, so it is believed that the company’s revenues in 2024 will grow as planned by 10% if it is able to maintain the strong revenue momentum from these two companies.
However, when looking at ONEE stock, it looks interesting. The current share price is calculated as a 2024 P/E of 28 times, which is considered inexpensive when compared to the consensus EPS growth rate estimate of 28%.
Read more news
Involved
Follow us
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”