RS Group is Back with the Combined Forces of Commerce and Entertainment, Clocking 5-Fold Profit Growth for Q3/2022.
Moving Forth with Pet All to Offer Comprehensive Pet Solutions.
RS Group’s profit grew 82 million baht, or 525% from the previous quarter due to business recovery, leading to a total revenue of 946.5 million baht in the third quarter of 2022, or 14.3% from the previous quarter and 11.1% from the same quarter of last year. Media and entertainment business registered 10% revenue growth from the previous quarter, accounted for by the increasing sale of content to online platform and events that are growing in numbers. Meanwhile, the commerce business grew more than 20% from the previous quarter from the full-quarter recognition of ULife revenue and the expansion of distribution channels for health and beauty brands, including the growing pet brand, Lifemate, which led to the establishment of Pet All Company Limited to extend its pet ecosystem and offer comprehensive wellness products for pets.
Surachai Chetchotisak, Chief Executive Officer, RS Public Company Limited, said, “In the second half of the year, RS Group’s revenue and profit are on the increasing trend. For the commerce business, we now recognized ULife revenue for the full quarter. We have also strategized for RS Mall to focus on offering our quality brands, which will enhance our profit margin in the long run. For Quarter 3/2022, the ratio of in-house and partnered brands is 70:30, contributing to the increase in the gross profit of the commerce business. Moving forward, we will continue to further develop and offer variety of pet products under Lifemate brand, from wet food, cat licking snacks, dog snacks, as well as pet care products such as shampoo for dogs and cats. Our target is to build Lifemate into the brand for comprehensive pet products in the future. Lifemate has definitely been a substantial contributor towards the increased revenue this quarter, while the media and entertainment business experienced an evident recovery from the return of ads from various brands that were spent to organize end-of-year marketing campaigns. With the lift of COVID-19 measures, there has also been a continued recovery from event organization.”
Wittawat Wetchabutsakorn, Chief Financial Officer, RS Public Company Limited, said, “For the third quarter of 2022, the company recognized a total revenue of 946.5 million baht, a 14.3% increase from the previous quarter. The quarter’s profit grew 82 million baht, or 525% from the previous quarter. The growth generally was the result of the continuous recovery of all key businesses. The commerce business generated 477 million baht, or 19.6% growth from the previous quarter, while media and entertainment business registered 368 million baht in revenue, or 6.1% growth from the previous quarter, which mostly came from the increased sale of content to online platforms. At the same time, the company’s media business, including television, radio, and online platforms, is an essential part of the Entertainmerce model, in strengthening our distribution channels, building a key differentiation against other companies, and supporting the growth of our commerce business. For the same quarter, the music and other businesses also generated 101.5 million baht, or about 23.8% growth from the previous quarter and 134% from the same quarter of the previous year. The growth was mainly contributed by the increase of events as the COVID-19 measures had been lifted, leading to event sponsorship and the licensing fees from the use of media distribution in the events and entertainment locations that had recently continued their normal activities this quarter.”
“We anticipated that RS Group’s revenue would continue to grow in the last quarter of this year, due to the strength of the Entertainmerce business model. Media and entertainment business will continue to grow from the return of medium- and large-scaled events, including major concerts in the fourth quarter that had been held back for over two years resulting in both RS Meeting and Kamikaze concerts being sold out. On the other hand, the commerce business’s growth came from the key platforms, namely ULife, the modern direct sales business, and RS Mall, the on-air and online distribution channel for health and wellness products. Additionally, there will be new products being launched, including well u and Vitanature+ supplements, CAMU C functional drinks, and Lifemate pet food. Moreover, RS Group continues to seek partners for M&A and JV to strengthen our Entertainmerce business. The latest development was the establishment of Pet All Company Limited to invest in the pet wellness business to build a comprehensive pet business. It will support the expansion of RS Group ecosystem and maximize the potential of all the businesses to mutually support one another effectively,” Surachai concluded.