JKN broadening its horizons

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JKN Global Media (JKN) aims to sustain growth by transforming itself from a content provider to a commercial and entertainment company.

Jakkaphong Jakrajutatip, the company’s chief executive, said its business model will be the same as The Walt Disney Company, which covers content, commercial and entertainment.

JKN wants to branch out into the commercial business using its own investment and through joint ventures. Sectors in the pipeline include health food, beverage and beauty.

“Expanding from content will reduce business risks and we want to utilise our specialisation in marketing, using TV air time to promote new business,” she said.

 

Ms Jakkaphong said the company will opt to forge joint ventures with partners as well as using its own investment in the area of health and beauty products.

JKN is in talks with Bhurit Bhirombhakdi from Singha Corporation, the owner of Singha beer, and Krit Srichawla of Fico Corp regarding a joint investment in a kombucha tea company. The value of this deal is expected to be in the range of 100-150 million baht.

The company plans to visit a kombucha tea enterprise in Chiang Mai within a few weeks to explore the business opportunity.

If the deal can be done, three parties would hold an equal stake in the tea company.

“We’re interested in kombucha tea because it is a healthy drink which can meet consumer demands, while competition is not as high as in other tea product segments,” said Ms Jakkaphong.

This year, JKN Global Media already bought a 70% stake in a hair clinic business, as well as joining Nawamin 9 Hospital by taking a 50% stake in a beauty surgery clinic slated to open next year.

JKN started to expand into commercial businesses this year through eight food and beverage products, such as a food supplement, snack and energy drink. It expects to launch between 40-50 new products next year, including herbal and functional drinks. These products will be sold via various platforms, including traditional trading platforms, along with modern and online platforms.

Teeraphat Petporee, the company’s chief financial officer, said the firm plans to spend over 900 million baht to expand its business next year. The company has spent 2 billion baht on its expansion plans this year, Mr Teeraphat said.

Of this, 800 million baht has been allocated to the purchase of content and its own content development, while the other 100 million baht would be spent on the food and beverage joint venture.

JKN Global Media’s revenue stood at 1.71 billion baht in 2019. It expects to achieve 2 billion baht in 2020, before reaching 3 billion baht in 2021. From its estimated revenue next year, one billion baht will come from its commercial businesses. It aims to generate revenue of 5 billion baht in 2023, jointly driven by content and commercial business, and reach 10 billion baht in 2026.

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