Equity Analysis /

Thailand: Media - Stay defensive for now

  • Out-of-Home recovery

  • Ad spend dropped YoY in Jan

  • Cloudy 1Q23 outlook

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
17 March 2023

Media stocks remain under pressure, as the market is cautious over the ad spend outlook. TV operators are maintaining defensive postures, so it’s best to await clear signs of an ad spend recovery. OOH players should recover steadily.

Out-of-Home recovery

The seven Media stocks under coverage posted aggregate core earnings of Bt463m for 4Q22, up by 4% YoY and 28% QoQ. PLANB led the growth with a core profit for the quarter of Bt239m, up by 139% YoY and 37% QoQ, driven by an OOH media revenue recovery. The runner-up was WORK with Bt36m, a YoY turnaround, as it held a big concert in 4Q22. RS and VGI posted shallower YoY core losses (VGI wrote its bottom-line in black ink, due to a gain on a divestment). In contrast, BEC and MONO reported core earnings dives of 57% YoY and 88% YoY, respectively, because media revenue fell at both firms. MAJOR’s 4Q22 core profit slipped 7% YoY, led south by bonus expenses and asset write-offs tied to the closures of two branches.