BEC: Cutting the Tumor

Most shocking news in the media industry recently was the disposal of the entire investment of BEC World Public Company Limited (BEC) in BEC-Tero Entertainment Public Company Limited in the amount of 59.99% stake to “Mr. Brian Lindsay Marcar” at a total price of 15 million baht.

 

As all we know well that BEC has a long-lasting partnership with BEC-Tero…In the early day, BEC-Tero played an important role in supporting Channel 3 famous by producing bunch of notable TV programs such as Rueng Lao Chao Nee, Rueng Lao Sao-Atit, Kao Wanmai,etc., and operating 2 radio stations; 95.5 MHz and 105.5 MHz. BEC-Tero also organizes and promotes concerts for both Thai and international artists.

 

However, the consumer behavior trends have changed lately…the glory time of concerts has passed, along with a higher competition. Moreover, actors and actresses from Channel 3 are gradually dropping in popularity.    

 

The football club namely BEC Tero Sasana that BEC-Tero had invested several years ago also flopped, facing a large financial loss.  

 

Resulting in missed operating result targets…In 2015, BEC-Tero’s net profit stood at 111 million baht with a revenue of 2,954 million baht. In 2016, net profit decreased to 39 million baht with a total revenue of 2,320 million baht, then flipped to book a loss of 43 million baht in 2017, while income was 2,144 million baht. In 2018, the loss was 41 million baht with a revenue of 1,838 million baht and in 2019, loss surged to 211 million baht with a total revenue of 1,610 million baht.    

  

Moreover, BEC-Tero is expected to record a further loss this year as the COVID-19 has caused the postponement and cancellation of various concerts/shows and events.

 

The long BEC holds shares in BEC-tero, the more loss BEC would recognize. Therefore BEC decided to abolish BEC-Tero in order to reduce operating loss.

 

As soon as BEC-Tero disposed, BEC outlook has significantly improved as the burden lessened, but for BEC-Tero, it seems to face a more difficult situation. After splitting up with BEC, BEC-Tero changed its name to Tero Entertainment Public Company Limited.

 

Well, cutting the tumor really helps BEC to come alive again.