Prevailing weak ad spend drags on the short-term profit outlook, but we see a U-shaped recovery manifesting. We don’t believe that COVID-19 will irrevocably dissuade people from going outside, so OOH media will remain a major component of future ad budgets when conditions normalize. BUY!
Core loss was shallower than modeled
PLANB posted a net loss of Bt85m for 2Q20, a YoY and QoQ reversal. Excluding an extra item—a Bt14m extra expense related to the new TFRS16 accounting standard—the core loss would be Bt71m, a YoY and QoQ reversal. But PLANB’s core loss was 37% shallower than our estimate (and 23% shallower than the consensus projection), due to a fatter GM and higher sales than we had assumed.