Investor Relations

Despite the COVID-19 crisis throughout 2020, RS Group outperforms the defying situation. It makes such a high net income of 3,774 million baht, a rising profit of 528 million baht, and a 45% increase from the previous year. The record income from commerce business is an outcome of utilizing the PDS technology to manage customers' data, various advertisements, unique presentation of products, well-planned campaigns, and promotions, and the rise of the television business from last year due to improved content management. The board recently decided to give out warrants at the ratio of 5:1 to existing shareholders instead of paying dividends.

Mr. Wittawat Wetchabutsakorn, CFO of RS Group, revealed that "2020 was a challenging year for RS Group due to several changes and the COVID-19 pandemic. However, we have adapted to these changes and crises quickly, resulting in a handsome income of 3,774 million baht and a lucrative profit of 528 million or 45% from 2019. In particular, the commerce sector demonstrated a record income of 2,382 million baht or 18% higher than the previous year thanks to the successful expansion of offline and online selling platforms, the various advertising channels, unique product presentation for different times, and continuous improvement of teleselling skills. All these efforts expanded the customer base to 1.6 million upon the end of 2020, and the trend is rising continuously."

Customer data management is the priority of RS Group for three main reasons.

1. Improved accuracy of the predictive dialing system (PDS) makes it applicable to all target groups and enables the telesales team to reach more customers.
2. Customer data analysis is beneficial for presenting health products and sorting out suitable campaigns and promotions based on each target group's behavior.
3. Sales and marketing activities boost customers' spending, especially during the COVID-19 pandemic when people take better care of themselves and become more interested in dietary supplements, resulting in growing income from all channels.

Despite harsh pricing competition and lower advertising budgets during the pandemic, the media sector manages to gain 7% more income of 1,148 million baht from the previous year because of three main reasons.

1. Content management helps expand the content to overseas and other online platforms (OTT).
2. The Company focuses on cost management for creating the content while improving the rating of Channel 8. The hourly rating for age groups 15+ and 18+ in 2020 was 0.45% compared to 0.42% in the previous year, although some shows were rerun during the pandemic to save cost.
3. The Company succeeds in managing advertising minutes with 100% efficiency by advertising and selling the commerce business's products. This contributes to the growth of the commerce business in every quarter of 2020.

"RS Group runs the business with the unique Entertainmerce model and builds up its strength constantly by investing in other companies to broaden the ecosystem and increase the value of the Company. The commerce business continues to expand the advertising and selling channels to reach all target groups, promote the growth of online platforms, and launch new products to the mass market, maintaining its strength and advantage in the selling platforms and the products. In terms of customer data management, voice analytics enable the tele-sales team to respond to customers immediately and accurately, resulting in successful sales. All these play a key role in pushing the Company's revenue to make an all-time high. In addition, the board meeting has approved the fourth allocation of warrants (RS-W4) for a period of three years instead of paying the annual dividend to shareholders at the ratio of 5:1 at the exercise price of 29 baht. The list of eligible shareholders to receive the warrant will be announced on 27 April 2021 (record date). This warrant offering is a return to shareholders instead of distributing the dividends. This way, the Company can keep the cash for expanding the business and preparing the financial strength for long-term growth of RS Group," Mr. Wittawat added.