We think that the market has mostly priced in the negative news. In Aug, WORK will start a big programming revamp. We expect its rating and top-line to gradually recover in 3Q20. Our call has shifted up from SELL to TRADING BUY to a target price of Bt12.
2Q20 bottom-line was above our estimate
WORK posted a Bt2m net profit for 2Q20, down by 97% YoY and 96% QoQ. Excluding an extra item—a Bt7m extra expense related to the new TFRS9 accounting standard—core earnings would be Bt9m, down by 91% YoY and 84% QoQ. The result constituted a positive surprise, as we had expected both net and core losses of about Bt60m. Sales were higher and GM was fatter than we had assumed.