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Workpoint Entertainment PCL: Strong earnings behind the wall

  • Strong 2Q-2H21 earnings momentum
  • Attractive risk/reward proposition
  • Cheap valuation versus BEC

“What will happen if the Gang 3 Cha era ends?”—the question for WORK 10 years ago. Three years ago, people asked, “What’s next after The Mask Singer era ends?” WORK has since proved the wisdom of its programming. We are now in The Wall Song era (now WORK’s most popular show). In the gameshow, superstar singers must guess the identity of the mysterious vocalist behind the wall. For WORK, we guess strong earnings are behind the wall.

Strong 2Q-2H21 earnings momentum

Among SET-listed media firms, only WORK and MONO reported both YoY and QoQ ad revenue growth for 1Q21 (the first-quarter is normally seasonally weak for ad spend). Looking to 2Q21, Thailand’s third COVID-19 outbreak has triggered a surge in TV-watching—the nation-wide mean monthly TV rating rose from 7.04 in Mar to 7.32 in Apr. Although, this round of COVID-19 may impact WORK’s content production (little first-run content), its rating rose 7% from 0.63 in Mar to 0.67 in Apr. Our industry check indicates that production houses will resume production this week. In 3Q21, WORK plans to revamp its programming, which should push its rating higher.


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