RS Group Shows 3Q23 Success by Achieving All-Time High with Profit of THB1.18 Billion

RS Public Limited Company or RS Group, under the Entertainmerce business model with the aim to elevate quality of life for consumers and their pets, reveals Q3/2023 business performance, achieving an all-time high from the dramatic growth of the entertainment businesses which earned revenue from concerts and events after the pandemic has subsided. Meanwhile, the commerce businesses have successfully recovered from the newly adjusted business model.

As a result, the company’s total revenue for the third quarter increased by 6% to 1.019 billion baht, with a net profit of 1.182 billion baht, a quarter-over-quarter surge of 1,176% and a nine-month net profit of 1.367 billion baht.  Also, it is expected that the fourth quarter’s performance will hit the target as planned. This will reinforce the success of the recently adjusted business direction which strives to unlock RS Group’s business potential through the latest structure of four business groups, namely RS Music, RS Multimedia & Entertainment, RS LiveWell and RS Pet All. Accordingly, each business is now capable of operating with greater agility to generate revenue and explore new business opportunities.

Mr. Surachai Chetchotisak, Chief Executive Officer, RS Public Company Limited, said: “In the third quarter, the overall revenue was from the parallel growth of both the commerce and entertainment businesses. Under RS LiveWell, the house brands include well u, Vitanature+, DARING & CO., aviance, Beyonde, iFresh, Happie Homie and De Beste, which own the products for health, such as well u collagen Type II plus calcium, well u collagen Type II plus abalone and organic tea from vitanature+. At the same time, ULife has successfully transformed its business to a subscription model, selling products on a monthly basis with a special offer for customers who purchased products through the subscription program. As a consequence, the company saw a consistent income base and sustainable growth, while RS Mall continued expanding its customer base, especially through online channels. Moreover, products for pets under the brand Lifemate generated its revenue by developing new formulas and introducing new packaging, especially for pellets and wet food for cats. In the meantime, the entertainment businesses kept growing during the high season of concerts and events, as well as receiving a special profit from the collaboration with Universal Music Group to establish RS UMG Co., Ltd. with the purpose to manage music licenses together, while hitting an all-time high in this quarter. This came about as a result of each business’ work strategy being adjusted to increase flexibility and agility in forging new alliances, demonstrating the viability of the business plan and direction to improve the capability to generate greater revenue that we used in operating all the businesses. Moving forward, we still kept implementing the Entertainmerce model that combines our existing expertise in media and entertainment with proficiency in commerce, while continuing reinforcing RS Group’s ecosystem to be a strong company from upstream to downstream, namely product development , marketing, sales, and distribution channels, as well as various services that cover lifestyles of consumers and their pets with our ultimate goal to develop competence in generating revenue and profit for all the businesses consistently and sustainably.”

Mr. Wittawat Wetchabutsakorn, Chief Financial Officer, RS Public Company Limited, revealed: “In the third quarter, the total revenue reached 1.019 billion baht, rising by 6%, while the net profit hit 1.182 billion baht, growing by 1.176% on a quarter-on-quarter basis. At the same time, the revenue from the commerce businesses has risen to 370 million baht, increasing by 11% from the previous quarter. This illustrates the impressive development of products and services under the commerce businesses, and shows the revenue realized from the M&A with Pet Medical Group Co., Ltd. As for the entertainment arm, the multimedia and music businesses generated a total revenue of 650 million baht, rising by 3% on a quarter-on-quarter basis. The main sources of revenue were concerts, events and sponsorship. Additionally, the other revenue was from the partnership with Universal Music Group to form RS UMG Co., Ltd. in order to manage music licenses together. The transaction has resulted in the special profit valued 1.446 billion baht. After deducting costs and related taxes, the company acknowledged the special profit of 1.111 billion baht from the transaction in this quarter. In the fourth quarter, the remaining amount of 190 million baht (before income taxes) will be acknowledged accordingly. Concurrently, RS Group will achieve a nine-month net profit of 1.367 billion baht.”

“However, by the last quarter of 2023, the business performance will grow constantly as targeted both in the commercial and entertainment arms with a comprehensive range of health products and services for consumers and pets. In the fourth quarter, RS LiveWell will export personal care products under the brand vitanature+ to the Philippines. The other notable business movements include the launch of the first branch of Pet All My Love – our retail shops for pets, and the opening of a new branch of HATO Pet Wellness Center at Ours, Charoen Nakhon. As for the entertainment arm, a range of entertainment events will be hosted to celebrate the year end, including the series “Bake Me Please” Y Project, the new music label launch, cutting-edge music content development, COOL WINDY FEST 2023, “RS MUSIC and Ampol Food Present CONCERT SHORT CHARGE SHOCK REAL ROCK RETURN,” and nationwide events from RS Multimedia & Entertainment that will brighten up the year-end celebration even more. Furthermore, new business exploration, collaboration with strong partners, service expansion for people and pets’ lifestyles, made RS Group capable of maintaining our leadership in the media and entertainment sector and propelling ourselves with robust growth in the market for products and services related to people’s and pets’ health. All is under the Life Enriching initiative that aims to truly elevate all dimensions of people and pets’ lives,” Mr. Surachai concluded.

Recently, the 1/2023 EGM has approved to grant free RS-W5 warrants with a ratio of 10:1. The RS-W5 warrant holders can exercise their rights to purchase common stocks of RS at 6 baht. The warrants will be valid within two years after the issuance and the excluding warrant date (XW) is 4 January 2024.