BEC Seeks the Way for Survival

In a period of one month, the share price of BEC WORLD PUBLIC COMPANY LIMITED (BEC) had hiked moderately by 33.58% as of April 29, 2019. The share closed at THB 9.15/share, increased THB 0.05/share or 0.55% when compared to the closing price on April 28.  

The main factor that could make BEC’s share continuously increase is due to a good news of Section 44 unlocking the complicated issue from digital TV operators which allows them to get an exemption from the 4th and 5th installment license fee and an opportunity to return the license. This helps the group to feel more comfortable after facing difficult situations for a while.

Whoever wishes to release the burden of holding a license, now is the chance.

In point of fact, BEC might be the one who gains the most benefit from the unlocking because BEC holds 3 licenses for 3 channels which are channel 33HD, channel 13Family, and channel 28SD. The objective and strategy of BEC for broadcasting 3 channels is responding the need of all audience. However, up to this time, it seems like BEC might get into the wrong strategy due to channel 3HD is the main and only one channel which makes a profit while 13Family and 28SD are still unable to make profit as expected

Even if in the past, BEC used the strategy of rerunning the old TV series on channel 13Family and channel 28SD for reducing production cost, Still the revenue was unable to meet the expectation and not enough to cover the license fee and mach number for all three channels that were quite high.

Which leads to a lower revenue and profit along with losing advertisements to a competitor and the decrease of the audience as they consume more on the social media were also the reason for losing the income for BEC. More than that in 2018, BEC’s income turned from gaining to face a deficit of THB 330 million from the revenue 10,504 with the net profit margin at -3.14%.  

BEC earned THB 8,878.8 million from selling advertisement, decreased 10.2% from the previous year which was THB 9,890.2 million. In term of concert and show arrangement, the revenue of these activities was THB 368.5 million, decreased by THB 85.7 million or 18.9% from the last year THB 454.2 million.

Therefore, if BEC decides to return the license for Channel 13Family and Channel 28SD, it might free BEC from shackles because there will be nothing to drag its income and profit. It might be called they have to cut legs for survival.

This might led BEC to come back to be a big leader of TV Channel as in the past after losing for channel 7HD for a long time.

If BEC has still attached with the self-concept as the idiom facing a loss is bearable, but the face cannot be broken, the shareholder might have to face the same situation.

Although Mae Yoy or Sor-Renu from Chum-Seang (Kong-kam series) boots the rating of channel 33HD higher, it would not be enough to rescue BEC from the crisis.

It will be clear on 10 May 2019 which way will BEC choose.