MONO is Stuck in The Income Trap

Although Channel MONO29 just has a rating inferior to Channel 7 and Channel 3, the recently announced financial statement of Mono Technology PCL (MONO) just went in the opposite direction of its popularity. Instead of growing steadily, it turns into recession significantly. Latest this year 1Q19, MONO 29 was turnabout from a profit to THB 112 million deficit.

In regard to this situation, believing that the most investors are definitely dissatisfied and stunted due to their high confidence that MONO will turnaround. Who would have thought that the 1 of the top 3 TV channels will have such a messy backstage.

Moreover, the 1Q19 financial statement reported the total net income of THB 570 million, lowered 10% YoY,while the total net income from advertisement was THB 481 million, increased 1.26%, mobile app service was THB 32.30 million, declined 87.68% and earnings before interest, taxes, depreciation and amortization (EBITDA) was THB 249.29 million, lowered THB 249.29 milion or 25%.   

Currently, the status of MONO share is obviously good but it is an unprofitable stock!

As this result, the questions just popped up: why does the revenue of MONO shrink frightenedly despite the fact that it is ranked at the third position of top 3 TV channel?

Why most of agencies disregard MONO channel? Are they getting sick of rerun movies? That might be the reason for less revenue from advertisement.

Nevertheless, broadcasting a same movie is also effect on disregard of agencies, even if there are audiences to watch the rerun movie, in term of advertisement, it is unappreciated. It might also imply to the marketing team which cannot take a strong point of “Rating” to be the point of sale.

In another case is the management team who shuts themselves and do not seriously use their connection to be more useful in the commercial term.

However, whichever is a main reason, the weak point of MONO is to be stucking in the “income trap”.

Even though the rating is excellent but do not know how to take a profitable connection and seeking new opportunity, certainly, MONO might do not know how to spell the word “Profit”.

Hence, please keep an eye on and wish for the best