Nation Group confident of return to profitability with One Nation strategy

Nation Group CEO Shine Bunnag and vice chairman Somchai Meesen said they are confident the company will become profitable this year.

Speaking after a shareholders’ meeting on April 29, Shine said good progress is being made in restructuring the group’s businesses and its subsidiaries under the new strategy.

At the April 29 meeting, shareholders unanimously agreed to change the company’s name from Nation Multimedia Plc (NMG) to Nation Group (Thailand) Plc (NATION).

The shareholders also approved Nation Group’s purchase of 85.99 million shares, equivalent to 99.99 per cent of registered shares, of NBC Next Vision Co Ltd (NNV) at THB2.79 each from Nation Broadcasting Corporation Plc (NBC). The stake will cost the company THB239.72 million.

The Nation Group also gave NNV a THB221.30-million loan to repay its debt to NBC.

The transactions totalling THB461.02 million will be completed by July.

The shareholders also approved the sale of 691.03 million shares in NBC, a 61.46 per cent stake, at THB898.32 million to Nattapong Sitaworarat and Boon-ua Jitthanom. These transactions are also expected to be completed by July.

Shine said it was heartening to see that the shareholders of both Nation Group and NBC had approved everything on the meeting agenda.

He said these approvals will allow the Nation Group to go ahead with restructuring under the One Nation policy.

“This marks a new milestone for Nation Group as it steps forward to continue serving as a responsible, unbiased media company,” Shine said.

He said the aim of the One Nation policy is to synergise the workings of Nation Group’s eight media firms, namely Krungthep Turakij, Komchadluek, Nation Thai News, NationTV 22, The Nation Thailand, The People, Kob Sanam and Spring Online.

Under this synergy, the group’s media outlets will continue adhering to the code of ethics to help fight corruption, protect national and public interest as well as maintain professionalism with social responsibility, he said.

“We enter our 51st anniversary this year as a media group that has been standing by Thai people for a long time. We are the largest media group in Thailand and have always adhered to our ideology of being a media institute for the nation and the people,” Shine said.

NBC to focus on 3 businesses

Shine said NBC will use the THB461.03 million it has earned from the sale of its NNV stake for repayment of debt and to expand three businesses – media, home-shopping channel, and call centre.

The home-shopping business will focus on health products, the CEO said.

“Once the transactions are completed, Nation Group will become financially strong. We will have cash in our hands and be ready to expand,” he said. “The restructuring of Nation Group should be completed within May in line with the One Nation policy.”

Cashing in on synergy

Vice-chairman Somchai said Nation Group’s purchase of NNV shares has made the group’s structure clearer and leaner. Also, he said, with the restructuring, Nation Group can cut down on redundant costs.

“Apart from reducing unnecessary costs, the One Nation policy will also boost efficiency by bringing all arms of the group together. Under this synergy, they can all share resources for utmost benefit to Nation Group and NNV,” Somchai said.

He added that all media companies under Nation Group will link their online and offline platforms to earn more revenue. The group expects to record online income growth of at least 20 per cent this year compared to last year.

He said conventional media publications are still necessary for producing trustworthy content and for holding events, fairs and award ceremonies.

He said Nation Group expects THB800 million in revenue this year and should return to making profits again after a loss of THB118.07 million last year.

He reckons the Nation Group will realise a profit of about THB437 million from the sale of its shares in NBC and its investment in NNV.

Somchai added that Nation Group also plans to boost shareholders’ equity to over 50 per cent of paid-up capital so that the Stock Exchange of Thailand can remove the “C” or caution mark from the group’s stock sign.

As for the expected profits, he said Nation Group will use the gains to reduce its debt as much as possible. This way, he said, the group will be able to reduce its interest burden and make the company financially stronger. The company paid THB43 million in loan interest last year, he added.

Somchai said Nation Group will hire a financial adviser to help handle and clear accumulated losses of THB3.26 billion from its books so the group can start paying dividends to its shareholders in the future.

Branching out

Somchai also talked about the group’s new business venture – Nation Coffee.

He said Nation Group entered the coffee business because it has the potential to grow as people love drinking coffee.

The initial plan was to set up 10 Nation Coffee outlets, but it was put on hold due to the Covid-19 crisis. But now that the crisis is easing, Nation Coffee will look to open branches in co-working spaces, he said.

“We started the coffee business in June 2021. It’s normal for a new business to suffer losses. During the first six months of operation, Nation Coffee suffered a loss of THB1.75 million. But if we can have 10 branches, we will definitely return a profit,” he said.

Somchai also unveiled a plan to repackage The Nation’s 51 years of content into digital assets. He said the group has appointed Future Competere to design its token and NFT business, and more details will be available in the third or fourth quarter of this year.

Also, he said, under the One Nation strategy, the Nation Group will repackage its content to create documentaries that can be aired via the internet or other platforms.