THAILAND: Sky-High targets 5% growth

Parent company of Cool 93 Fahrenheit and Max 103.0 radio stations expects to weather any political turmoil that may arise in the latter half of the year

The Bangkok Post
Saturday, July 4, 2009

By Panuwat Permsantithum

Sky-High Network Co, a radio business of RS Plc, is confident of hitting a revenue target of 355 million baht by the year-end, up 5% from last year, despite economic uncertainty.

The company operates two radio stations -- Cool 93 Fahrenheit on FM 93 and Max 103.0 on FM 103. Sky-High forecasts 250 million baht in revenue from Cool 93 Fahrenheit and 105 million baht from Max 103.0 this year.

In the first half of 2009, Cool 93 Fahrenheit made 125 million baht while Max 103.0 earned 36.75 million baht.

Revenue last year was 340 million baht.

"I am confident of achieving our goal. Radio station sales have reached the halfway mark already," said Komsan Chetchotisak, managing director of Sky-High Network.

He expressed concern over political uncertainty in the second half of the year, but expects any effects on business operations to be manageable.

Bangkok's radio market is valued at about 6 billion baht per year. Analysts forecast a gloomy outlook continuing into the second half of this year with an ongoing economic slowdown.

According to Nielsen Media Research, ad spending on radio stations in Bangkok dropped 12.7% to 3.02 billion baht during the first five months of this year.

Political turmoil hit the industry hard during this period, said Mr Komsan. While experienced players with solid finances will survive, newcomers and smaller operators will find it even harder to work in the industry, he said.

Despite the drop in advertising spending, the radio business had room for growth because loyal audiences continue to bring business potential, he said.

Date Posted: 7/4/2009