Ad recovery boosts Nation Group's revenue

       The Nation Multimedia Group expects its revenue to increase 10-15 per cent in the second half, over the Bt1.2 billion recorded in the first six months, thanks to recovering advertising revenue.
       Chief executive Thanachai Santichaikul yesterday said the company was seeing signs of recovery in advertising revenue. Many large corporations had begun placing more ads in all of NMG's media channels.
       "Our ad revenue showed its highest drop in January, when most firms stopped spending on advertising because they lacked confidence in the country's economy and political situation," he said.
       NMG expects to generate more than Bt2 billion in revenue this year. However, jt is still lower than last year, when the group took in Bt3 billion. NMG's first-half advertising revenue fell 26.58 per cent to Bt652 million, from Bt888 million in the same period last year. Revenue from the group's publishing business showed the highest drop, 36 per cent, while income from broadcasting and new media business increased 11 per cent.
       Despite the fall, advertising revenue from the company's publishing business contributed 69 per cent of its first-half revenue. Ad revenue is expected to improve in the second half, to a level that is 15-20 per cent below last year's second half. An improvement of that magnitude would leave full year ad revenue 20-25-per-cent down from last year, Thanachai said.
       Revenue from the group's broadcasting business, consisting of radio and television, rose 16 per cent year on year in the first half. This will likely increase continuously in the second half, because of two new television programmes the Nation Broadcasting Corporation (NBC) has produced for Channel 11.
       Television revenue is targeted to increase 25 per cent from last year.
       Thanachai said the group's second-half operating costs were also expected to decline slightly, mainly because of lower paper costs.
       Meanwhile, the company is planning to list its two subsidiaries - Nation International Edutainment and NBC - on the Market for Alternative Investment in the fourth quarter. It will consider market sentiment a major factor influencing the listing.
       If the two subsidiaries list as planned, NMG will book special revenue from selling part of its existing shareholdings in initial public offerings.
       "We're trying to turn the company to profit in the second half after booking a net loss of Bt110 million in the first six months," Thanachai said.