The past year was impacted by the local economic situation and decline of Thai exports, as well as by external factors like the uncertainty of the trade war, the Brexit issue and the global economic slowdown. Although the government implemented measures to assist low-income people, stimulate consumption and promote domestic investment, as well as initiatives to help small-scaled farmers and farmers suffering from drought, the Thai economy has not improved in the last year.
At RS, we are determined to operate the business in accordance with a horizontal strategy for business growth and expansion, including the growth of new commerce businesses combined with our existing strength in television and radio media as well as in music. We are also entering into alliances with strong business partners who have unbroken potential, including both digital TV leaders and other leading media partner groups, in order to expand our business as well as the broader business ecosystem with new ways thinking, unhindered by boundaries. Important components of the past year include our constant adaptation to this era of disruption and directly forging paths to and better understanding of consumers’ needs (Direct to Customer), both of which have ensured continuous growth for the Company along with all its partners; we were also largely shielded from the overall economic slowdown
For 2019, the Company earned a total revenue of 3,611 million baht, a slight decrease from the previous year. The growth of our commerce business revenue was relatively stable from the previous year. While the overall economy caused customers to delay their purchasing decisions, a strong and complete business ecosystem, from upstream to downstream; a variety of content; marketing that reaches consumers directly; complete and robust media from both RS and the synergies with its partners; ownership of products that meet customers’ needs in each platform; a database management system of more than 1.3 million customers that features in-depth or data-driven analysis; telemarketing system teams; warehouse management; and alliances with efficient delivery and payment partners have resulted in the combination of our strengths in “Entertainment”, in terms of owned content and major media platforms, with “Commerce”. The latter encompasses our full participation in the commerce business, offering products and services, with direct access to consumers on all platforms. This has enabled the Company to fully step into the “Entertainmerce” role.
As for Channel 8, despite being affected by the overall industry slowdown, the number of TV viewers has clearly not decreased; as such, Channel 8 remains an important base to further expand the commerce business. Also, measures to help digital TV in the past year, starting now, will reduce Channel 8’s digital TV licensing fee and broadcasting network (multiplexer) rental fee, which amount to over 100 million baht per year. In addition, RS's DNA in both the radio and music businesses has been an important part of generating income and profits in the past year, including the spotlighting of famous artists from the past who still have a loyal fan base at the “Raptor Evolution 25 Years Mai Mee Krengjai” and “D2B Infinity Concert 2019”, both of which were well received. Concert tickets sold out within a few minutes, and this phenomenon will return in 2020
For 2020, the Company will focus on developing every business in the group continuously. This will be done by working with partners to expand channels that reach more diverse customers; developing online channels through the COOL brand, which has a strong online customer base; re-branding the entire organization through the formulation of a new vision, mission and corporate culture, including management restructuring with a focus on data-driven strategies to run the business more efficiently; and forging ahead with new business opportunities. These will all drive the operations in 2020 to grow with strength and build long-term sustainability.
In the past year, RS encountered many trying moments, but with the support from its shareholders, partners, customers, employees and stakeholders, we were able to successfully overcome the challenges. On behalf of the Management and Board of Directors, we thank you and sincerely hope that all of you will continue to support and grow with the Company.