SET-listed Nation Multimedia Group Plc (NMG) posted a consolidated net loss of 2.16 billion baht last year because of lower advertising revenue, higher expenses and recognition of impairment losses of digital terrestrial TV licences.
The net loss was 83% larger year-on-year than the loss of 1.18 billion baht registered in 2016. Revenue from sales and services ebbed by 11% year-on-year in 2017, said NMG in its yearly management, discussion and analysis ending Dec 31, 2017.
"The main reasons [for lower sales and services revenue came] from an economic slowdown, which caused advertising revenue to decrease by 10% and circulation revenues of newspapers, pocket books and children books to [fall] 25%," said NMG.
Last year's expenses increased by 31% year-on-year.
"Cost of goods sold and services decreased by 15%, in line with [a decline] in revenue from sales and services," said NMG. "Distribution cost and administrative expenses fell by 20% as [the company's] subsidiaries recognised a provision for inventory obsolescence and wrote off the licences for publication from their restructuring of 204.45 million baht in the second quarter of 2016."
The company's subsidiaries and indirect subsidiaries also recognised an impairment loss of digital terrestrial TV licences and related assets worth 1.5 billion baht in 2017.
NMG said late last year it would sell its shares in digital TV channel Now26, a publishing plant, logistics and real estate for a total of 1.4 billion baht as part of its business restructuring plan.
The assets comprise Nation U, which owns a university licence and operates Nation University; Bangkok Business Broadcasting, the operator of Now 26 digital TV channel; WPS (Thailand), which provides printing services; NML, a logistics provider; and land and buildings.
"The Stock Exchange of Thailand ordered the trading suspension of NMG since the morning session of March 2, 2018 because [the company] failed to submit its financial statements for 2017 by a specified deadline," said the SET statement.
