Equity Analysis /

Thailand: Media - The worst is behind us, but outlook remains gloomy

  • Ad spending rose 9% YoY and 10% QoQ in 2Q22

  • Leaders of the pack in 2Q22—MAJOR and PLANB

  • Significant recovery expected in 4Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
5 August 2022

In this environment, media stocks remain under pressure as the market encourages more cautious ad spending. Almost all TV operators have maintained a defensive posture, so it’s best to await clear signs of ad spending recovery. Out-of-home and cinema players should recover steadily as they were the hardest hit by the COVID-19.  MAJOR seems to be the best play for now.

Ad spending rose 9% YoY and 10% QoQ in 2Q22

Total ad expenditure in 2Q22 was Bt25bn, up 9% YoY and 10% QoQ. Seven media categories reported YoY ad spending rises—cinema (up 198% YoY but flattish QoQ), transit (up 53% YoY and 41% QoQ), TV (up 1% YoY and 10% QoQ), radio, newspaper, outdoor (up 16% YoY and 11% QoQ) and in-store (up 37% YoY and 30% QoQ). Total OOH ad spending in 2Q22 rose 30% YoY and 22% QoQ (from the low base set during COVID-19). Eyeball counts for OOH media saw a hike in 2Q22. BTSGIF posted ridership on the BTS of 12.2m trips (or 407k/day) for Jun, up 17% YoY and 129% MoM. BEM reported mean ridership/day on MRT of 283k trips in Jun up 134% and 23% MoM. On expressways, average traffic volume/day rose 32% YoY and 2% MoM to 1,063k trips.