Bangkok--14 May--124 Communications
124 Communications Plc (PR 124) has revamped its strategies and is gearing up launch a blitz on the private sector to win over new clients. The company has contracts worth a total of 85 million baht in hand while first quarter earnings totaled 43.47 million baht.
Nimitz Modrakee, Chief Executive Officer of 124 Communications Plc, the country’s leading public relations service provider, said today that the company is overhauling its public relations strategies the whole of this year to meet the needs of its clients and keep up with constantly changing market conditions. The company is concentrating heavily on the private sector this year and expects to obtain about 60% of total revenues from private companies with the remaining 40% to come from the public sector.
Several new clients have turned to PR124 for public relations advise and services since early this year including American Standard, Apple Computer, real estate company Chaoprayamahanakhon (CMC), Mahachai Hospital, Kodak (Thailand) Co., Ltd, BEA Systems, The Arte-tainment Center, The Esplanade, Lenovo which has won the contract to design Beijing Olympics 2008’s torch as well as working out the Stock Exchange of Thailand’s public relations for Thailand via CNBC.
PR124 also has clients in the service industry including Toni & Guy, MasterCard Worldwide, Thai Storage Battery Plc, Airport of Thailand Plc, Siam Future Development Plc, Solution Conner (1998) Plc, IRPC Plc, Media of Medias Plc, K.E. Land Co., Ltd, Diamond Roofing Tile Plc and many more.
As of April 2007, the company obtained a total of 85 million baht of signed and approved contracts. From now on PR124 will focus on offering additional public relations services to the private sector and is confident that it will get more business because it is fully ready in terms of business expertise and skilled and experienced staff. PR 124 is therefore certain revenues will increase from the second quarter onwards.
“Although PR activities are declining in both government and private sectors this year, there are still opportunities to offer PR consultancy. This means we have to continuously adjust and shift to new business patterns which have led to a steady increase in the number of clients,” Mr Nimitz said.
Mr Nimitz also revealed the company’s the first-quarter operating results which showed earnings of 43.47 million baht, up 5% from 41.58 million baht posted in last year’s first quarter. Net profit totaled 320,000 baht, a drop from 3.3 million baht obtained the previous year.
The company’s revenues jumped in the first quarter because the volume of media buying increased in this period with this accounting for 68% of total income. However media buying entails higher operational costs which flattened the company’s initial profits.
Nevertheless, the company has introduced new strategies to control other operational expenses. In the first quarter, sales and administrative expenses amounted to 9.9 million baht, a year-on-year decrease of 2 million baht or 16.5% from 11.9 million baht.
“The company’s first quarter performance was satisfactory. The political unrest and turbulent economy have not affected performance. Earnings may increase in the next quarters because in PR business, the first quarter is usually less active and revenues lower than the third and fourth quarters,” Mr Nimitz added.