MCOT Resumes Profitability in 1Q, Reporting a 104% Increase in Net Profit
MCOT's operating results in 1Q2021 shows profits after implementation of proactive strategic plans and effective expense management. It is expected to resume continuous profitability in 2021.
MCOT Public Company Limited (MCOT)’s operating results in Q1-2021 shows profits after implementation of proactive strategic plans and effective expense management. It is expected to resume continuous profitability in 2021.
Ms. Soontareeya Wongsirikul, MCOT’s Executive Vice President of Finance Group and Chief Financial Officer, discloses that the operation results in Q1-2021 ended March 31, 2021 shows profit of 35 million Baht, a 104% increase compared to the same period of last year, due to effective cost adjustment and management, which has continued since 2020 and came into effect in 2021.
The Company has sought to form partnerships with content producers to reduce content production expenses and carried out the Mutual Separation Program to reduce personnel expenses. This brings a 76% drop in total expenses, compared to the same period of last year. Thai television industry dropped 5% in Q1-2021.
Having television as the major source of revenue, MCOT adjusts business models focusing on increasing proportion of time rental programs. Media business can be sustainably operated if operators learn to adjust themselves and implement effective strategies to generate revenue from all sources. Total revenue in Q1-2021 is 362 million Baht.
Ms. Soontareeya further reveals that the Company plans to achieve continuous profitability, with a focus on reducing deficit and generating more revenue. Revenue from traditional media offerings will be maintained in accordance with the corporate vision of being a provider of trusted content in an accurate, timely and trustworthy manner. Meanwhile, partnering with strategic partners will be put in place.
During the outbreak of COVID-19, the Company provides media channels to help relieve those affected. Rangjai.com, a website aimed at offering jobs for labor workers. Shop Mania, a shopping program offering quality products from Thai SMEs is aimed at promoting domestic trade, using synergy media strategies in attracting a larger group of consumers. This deems a challenging opportunity for MCOT to firmly and sustainably expand its business.