RS’s Cost Reduction Allows It to Gain 8% of Profit in 1Q19

RS Public Company Limited (RS) has reported its 1Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

RS has announced a net profit for the first quarter of 2019 in the amount of THB 110.2 million, increased by 8.1% when compared to the first quarter of 2018, but dropped by 18.7% from the fourth quarter of 2018.

The increase in YoY was due to the effectiveness of cost management in every business segment. However, revenue from media business decreased during the low season of the industry during first quarter of the year.

Cost of sales and services was reported at the amount of THB 502.1 million, decreased from the first quarter of 2018 in the amount of 79.8 or 13.7% as a result of a decrease in production cost of Channel 8 as well as cost of music and other businesses. For MPC business, a cost of sales to revenue ratio decreased slightly from previous quarter, given selling higher margin products.

RS asserts that the MPC business revenue declined slightly due to the election period in the first quarter, resulting in a decrease in sales conducted via television. This was because some viewers were interested in watching news channels before and on the day of the election. However, MPC revenue returned to normal after the election.