2q20 results meeting & 2h20 highlightsrs.listedcompany.com/misc/presentation/20200817-rs... ·...
TRANSCRIPT
2Q20 Results Meeting& 2H20 Highlights
14 August 2020
Virtual Conference
2Q20 Performance
Summary
Quarterly Financial Results ▪ 2Q19 - 2Q20
95 92 66
186
109
11% 10%7%
19%
13%
2Q19 3Q19 4Q19 1Q20 2Q20
-7%YoY-15%QoQ
542 443 465 500 586
262 270 250
376 221 96 174 181
109 26
900 887 895 985833
44% 44% 41%
56%53%
2Q19 3Q19 4Q19 1Q20 2Q20
(THB mn, %)
Revenue and GPM
Net Profit and NPM
Commerce
Media
Music & Others
Commerce
Media
Music & Others
%GPM
(THB mn, %) +14%YoY-42%QoQ
%NPM
• Highest record commerce revenue from higher of every sales channels
• Lower cost of CH8 from reductions in content cost, license, USO and MUX fees
3
• A rise in net profit from higher GPM and well-managed expenses
6M Financial Results ▪ 1H19 vs 1H20
205 295
11%16%
1H19 1H20
1,105 1,086
549 597
175 135
1,829 1,818
45%54%
1H19 1H20
-1%YoY(THB mn, %)
Revenue and GPM
Net Profit and NPM
Commerce
Media
Music & Others
Commerce
Media
Music & Others
%GPM
(THB mn, %) +44%YoY
%NPM
• Additional media revenue from content licensing without additional cost
• Lower cost of CH8, radio and music in proportion to a decrease in each revenue
4
• A rise in net profit from higher GPM and lower finance cost from disappearance of deferred interest
Commerce Performance
236 191 190 231 261
242 217 239
239 270
65
35 36
29
55 542
443 465 500
586 68% 66% 64% 65% 68%
2Q19 3Q19 4Q19 1Q20 2Q20
%GPM
(Revenue, THB mn)
YoY : +8%QoQ : +17%
Inbound
Outbound
Online & Others
Key Highlights
• Improved inbound & outbound sales momentum by 13%QoQ from growing customer to 1.4m people, coupled with sales channel expansion in Q1-Q2
• Predictive Dialing System (PDS) adopted more precisely to fully enhance efficiency of the call center system in maximizing customer contact
• “RS Mall Mid Year Super Sale”, another grand sales promotion continued to boost up the sales efficiency despite the market downturn
• High GPM at 68% showing the company’s ability to manage its overall product combination that most profitable and offering products that specifically address health care amid Covid-19 situation
Leverage on expanding customer base & sales channels
Effective marketing campaign and promotion
High gross margin maintained
5
1.4M customers
A fully implemented software tool
TV Performance
188 204 170
336
198
193 209 174
336
199
-33% -26%-53%
36%
4%
2Q19 3Q19 4Q19 1Q20 2Q20
Satellite TV
%GPM
(Revenue, THB mn)Key Highlights
• 2Q20 TV ADEX contracted as a result of Covid-19 pandemic and weak private consumption. However, people have had to spend more time at home, resulted in an unchanged of the number of TV viewers
• Adaptability of Channel 8’s sales and content production approaches, including content management in international markets and on other online platforms resulted in similar quarterly income of Channel 8 during 2019
• Content production cost plunged over 25% compared to quarterly cost in 2019 from content cost management and lower operating cost benefited from license fee waiver, a reduced rate of annual contribution to USO fund and a ceasing of MUX fee since June
A huge drop in TV ADEX
Unmatched CH8’s performance
Effective cost controls & benefits
YoY : +3%QoQ : -41%
6
Radio Performance
47 42 55
33 23
23 19
21
6
70 61
76
39
23
70%78%
72%81%
57%
2Q19 3Q19 4Q19 1Q20 2Q20
(Revenue, THB mn)
%GPM
Key Highlights
• “COOLfahrenheit”, No.1 radio station for Easy Listening category, showing a decrease in revenue in accordance with overall industryand no activities for listeners during Covid-19. However, both popular “COOL Outing” and “Ink Eat All Around” activities have resumed in Jul
• “COOLanything” new feature under the concept of “Enjoy music and shopping in one app”, developed to support the commerce business
Radio media industry shrank and no activities-linked
YoY : -68%QoQ : -42%
7
Media
Event
Turn online music fans into customers
Start in Q3
Music & Others Performance
55 86 83 74
24
41
88 98
35
2
96
174 181
109
26
55%64% 62% 64% 66%
2Q19 3Q19 4Q19 1Q20 2Q20
(Revenue, THB mn)Key Highlights
• Main revenues from YouTube, music downloading and to license music catalogue to bolster income streams
• A ceasing of events and concerts during Covid-19 measures causing a decline in other revenue
Online-generated revenue
Preventive measures implemented for Covid-19
YoY : -73%QoQ : -76%
%GPM
8
Music
Event & Concert
2H20 Highlights
Entertainmerce Strategy
10
RS GROUP
8M
Age 40+
Urban & Rural 70%
5M
(1.4M Customers)
Age 35-55
Urban 70%
32M subscribers &
9M followers
Age 18-50
Nationwide
4M
Age 25-44
BKK 65%
REACH
Commerce Media | TV Media | Radio Music
11
Content marketing through “Storytelling” Campaign & Promotion
Commerce Business Highlights
2x Inbound sales uplift
12
Product Lineup Technology Adopted
Partner
Customer Frequency
1.4 >> 1.6 M
+14%
1.9 >> 2.5 x/Year
+32%
S.O.M. DTX Probiotics
S.O.M. MultiplusCollagen
S.O.M. Choles
S.O.M. OVOMOV
S.O.M. Probio-10
REJU Real Bird Nest Drink
Meal Replacement
>20 SO per month
Commerce Business Highlights
Fashion FMCG Home & Living
TV Business Highlights
13
New Programs TV Entertainmerce Programs
Expected THB 50m from licensing
to be booked in 2H20
Expected THB 1m in revenue per slot
Radio Business Highlights
14
Lifestyle Online Shopping
No. of active listener : 150K per day
Product : Lifestyle & Gadget
Target customer : Age 25-44, BKK 65%
Storytelling : By COOLJ
To boost online sales by 80%YoY
Music Business Highlights
15
To turn >30M music fans into customers, starts in Oct
OPTION 3
Presentation for Lifestar Only
RS Investor Relations+662 037 8125-6
http://www.rs.co.th/[email protected]
https://www.facebook.com/RSInvestorRelations/https://twitter.com/rs_ir
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