GMM Grammy '07 profit up 141%

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BANGKOK -- GMM Grammy, Thailand's largest music and entertainment firm, reported a better than expected 141% rise in 2007 net profit on Monday as higher income from films and concerts offset flat music sales.

Grammy, 79%-owned by GMM Media PCL, reported a net profit of 502.24 million baht ($16 million), or 1.02 baht per share, up from 208.76 million baht in 2006.

The result beat an average 398.4 million baht profit forecast by six analysts polled by Reuters Estimates.

GMM Grammy shares were up 2% at 10.20 baht at 0439 GMT, when the main index SETI was up 0.35%.

The company's fourth quarter net profit rose 396% to 184 million baht from a year earlier, according to a Reuters calculation.

Grammy, valued at $166 million, had a 70% share of Thailand's music market and would benefit from a rebound of domestic consumption, analysts said.

"With strong growth in 2007 and the rosier outlook for 2008, we have ratcheted up 2008 revenue forecast to 7.67 billion baht," Phillip Securities said in a note to clients. It expected a 16.3% rise in Grammy's 2008 earnings.

Revenues rose 13.8% to 7.32 billion baht last year, with concert sales up 43%, film revenues rising 54% and a television sales up 29%.

Grammy's core music business had flat sales of 2.7 billion baht, but event revenues, which generate 13 to 18% of Grammy's sales, rose 42%. Income from managing artists rose 23% to 543.5 million baht.

Expenses rose 8.7% to 6.4 billion baht as cost of sales and production increased 11% and selling and administrative expenses rose 5.4%.

Grammy competes with number two RS PCL, which reported a net loss of 121.7 million baht in 2007.
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