The MAI-listed event organiser Pico (Thailand) Plc projects its revenue to grow by only about 20% in fiscal year 2007, down from 54% growth last year, due to uncertain economic and political conditions. Silchai Kiatpapan, the company's chief executive, said the knowledge communication business would act as the top growth driver in 2007, accounting for one-third of total revenues.
''The knowledge communication sector is expected to grow enormously this year as the interim government has put its effort into developing a knowledge-based society, especially among the younger generations'' he said.
In general, knowledge communication deals are less affected by seasonal demand as the contract length is typically 18-24 months. Knowledge communication events include museums, permanent exhibitions, visitor centres, discovery centres and learning centres.
Mr Silchai said Pico could not achieve high revenue growth as in fiscal year 2006 because of uncertain situations such as the unresolved violence in the South and a possible global economic slowdown.
However, the company still forecast that its event marketing business would grow steadily as it has a solid relationship with repeat customers who still plan to spend on promotion and marketing activities this year.
The market value of event marketing is estimated to be about 10 billion baht this year, the same as last year, mostly from private organisations.
Pico has a backlog worth 302 million baht in revenues, which will be realised by the middle of next year. Knowledge communication projects comprise 68% of that. It excludes two big events: the Motor Show and Motor Expo.
In fiscal 2006, which ended on Oct 31, the company posted a net profit of 71 million baht on revenue totalling 1.11 billion baht, up 54% from the year before. Of the total revenues, 61% came from event marketing, 23% from knowledge communication and 16% from other sources.
Its gross profit margin was 22.3%, return on assets was 14.9% and return on equity was 23.67%. Pico said that the healthy 2006 performance was due to higher cash generated from operations thanks to an improved credit policy.
Pised Chungyampin, the company's executive chairman, said it was seeking to form two to three partnership projects with some strategic investors. The partnerships will likely enhance Pico's event marketing business in the future.
''The deals are expected to conclude in the next six months. Our shareholdings in partnership projects will depend on our roles and expertise. We will benefit in terms of profit sharing and more jobs for our staff,'' he said.
Pico Thailand, Mr Silchai said, had the potential to go abroad and handle event activities in the Middle East or Europe. Last year, the company was named the best office along with Pico Singapore among the company's global network spanning 26 countries.
Pico shares closed unchanged yesterday at 3.82 baht, in trade worth 61,140 baht.
Source: Bangkok Post by Krissana Parnsoonthorn. Tuesday December 19, 2006