JKN Global reassures investors after bond payment rescheduling

JKN Global Group Plc (JKN), the owner of the Miss Universe Organization (MUO), reassured investors that its financial status is robust, despite a recent bond payment rescheduling caused by a liquidity mismatch. Jakkaphong Jakrajutatip, the chief executive and managing director, said at a briefing that the company is set to meet its revenue target of over 3 billion baht this year and will not miss any forthcoming bond interest payments.

The company had recently announced that it could not fully pay the 609 million baht due on its JKN239A debentures. Instead, it would pay 26% of the total, 156.6 million baht, leaving an outstanding balance of 443 million baht. The payment, comprising 146.62 million baht of principal and 9.98 million in interest, was disclosed in a filing to the Stock Exchange of Thailand (SET). Jakkaphong explained the procedure.

“We have cash of 156.6 million baht for the bond payment. For those who will be paid later, they will receive interest for the delay and Asia Plus Securities, the bondholder representative, will contact them by Sept 11 for more details.”

The debentures in question are the first of seven series of bonds worth 3.36 billion baht in total. The next interest payment is due on September 11, with subsequent payments scheduled for October 20 and Nov 10, 13, 15 and 24. The remaining six tranches of bonds, amounting to 2.76 billion baht, mature in 2024 and 2025.

Despite the recent rescheduling, JKN remains optimistic about its future revenue, thanks to the scheduled hosting of the 72nd Miss Universe pageant in the fourth quarter, which the company believes will significantly boost its earnings.

JKN reported revenue of 1.5 billion baht in the first half of this year, a 51% increase from the previous year, with a net profit increase of 33% to 102 million baht.

The company has plans for further expansion, including the introduction of new product lines such as drinks, skincare, and spa products, as well as diversification into the tour business. However, brokerage firm Yuanta Securities has expressed concerns that these ventures could put further pressure on JKN’s liquidity.

JKN also expects to see an increase in revenue from the pageant business in El Salvador, projecting 566 million baht in the second half of the year, up from 230 million in the first six months, reports Bangkok Post.