The Club made a net loss of THB 724k during the year. If the depreciation, as a non cash item, is deducted from the expenses, the operating loss was THB 355k for the year, down from an operating loss of THB 1,882k in 2015. Both years had some extraordinary and one off items, but even netting these out, the core deficit is not satisfactory and some issues need to be addressed in the near future. That said, because of the accumulation of surpluses in previous years the Club remains financially sound.
The audited accounts as presented do not give a particularly clear view as to the operations and real profitability of the Club. An example is that funds donated to the Club for a specific purpose were included by the auditor as cash available for use by the Club. In fact, the Club is unable to spend those funds on its operating expenses. A more detailed explanation is below.
The Balance sheet remains strong with the THB 13,697k in cash and short term investments out of a total assets of THB 19,760k. The Club has available funds for its general use of THB 9,318k. These funds are the accumulation of net revenues brought forward on the liabilities side of the balance sheet and should not be squandered. The Club should therefore look to making a surplus over the coming years.
Revenue and Expenses
Revenues for 2016 were THB 7.5m, almost unchanged from 2015's THB 7.6m. In 2014 they were THB 7.9m and in 2013 THB 11.1m. Expenses in 2016 were THB 8.3, down from 2015's THB 9.9m. In 2014 they were THB 8.4m and in 2013 THB 9.4m.
Membership fee income increased by THB 133k although at the end of the year we had about 50 less members than the year before. This is due to a change in profile of the members. The biggest drop was in the Associate category.
F&B income, function income, and visitor's fees combined decreased by THB 343k, mostly due to a significant drop in the last 4 months of the year, as up until then, results were better than the previous year.
There were no sponsorships and no gifts or donations for any purpose received during 2016.
The club's operations receive no financial backing from any outside source, and are funded entirely from membership dues, food and beverage sales, non-members entrance fees, occasional major special events, functions and press conferences by outside parties, and sales of publications.
Interest income was slightly reduced as low interest rates persisted, and the average deposits held were lower.
There was extraordinary income of THB 279k due to higher sales of "The King of Thailand in World Focus" book.
At the end of the year the club started a renovation that will be completed in 2017. It consists of new flooring and paintwork, a new air conditioning system, ceiling repairs, and the transformation of the old toilet area into a store room.
This renovation is being done together with the Maneeya Building, and the expenses are shared with them. The total cost of the renovations will be THB 1,172k, of which Maneeya will pay THB 406k (plus the cost of new toilets for the entire floor) and the club THB 767k. Most of these expenses (90%) will be seen in the 2017 financial statements.
If one adjusts for depreciation and the impact of "The King of Thailand in World Focus" book in both 2016 and 2015, this year's deficit was THB 658K, down from THB 1,177 in 2015. Thus there has been an improvement, but the financial performance is still not healthy.
The club has been running at a loss since 2014, also due to a changed environment that has made its operations more challenging than in the past. Since most of the club's expenses are fixed, if the club is not actively utilized it will run at a loss. The financial tide may have turned in 2016 with a much smaller loss, but this trend must be maintained if the club is to return to profitability in the coming years.
The only thing that will guarantee survival in the long run is an increase in the number of members and an increase in the use of the club. During 2017, we plan to increase the visibility of the evening programs to the general public, and we want to remind everyone that the club is available for private parties and events.
We also need the support of all members to expand the membership and the increase the number of visits to the club. To make this type of organization successful it takes most members, not just the few who donate their time and expertise by serving on the board. We hope that the renovated club will be more appealing to everyone and the operations will continue to show improvement.
Foreign Correspondents' Club of Thailand
Penthouse, Maneeya Center Building
518/5 Ploenchit Road (connected to the BTS Skytrain Chitlom station)
Patumwan, Bangkok 10330
Hours of Operation -
All departments are open Monday-Friday and closed Saturday, Sunday, and Holidays
(including Photo Gallery)
10:00 am - 11:00 pm
11:00 am - 09:00pm
11:00 am - 11:00 pm
10:00 am - 7:00 pm (8 pm on days when we have events)