GMM Grammy profits drop 20%
Higher operating costs drag down netBANGKOK -- Thailand's top music and entertainment group GMM Grammy said on Wednesday it expected this year's net profit to drop by 20% from last year's 705 million baht ($21.3 million) due to higher operating costs.
"We see net profit this year falling by about 20%. As for the revenue, it should come out quite close to last year's, or slightly lower," chief financial officer Sirichai Tantiponganan said.
Last week the company reported a net profit of 374 million baht in the first nine months, down 18% from a year earlier.
Chief operating officer Sumeth Damrongchaitham said its earnings and revenue were hit by low advertising spending and the weak economy, which affected to its key music and media businesses.
"For next year, overall it should be better as we will book revenue from big-event marketing and expect that satellite TV, as well as radio and television businesses, should contribute more income," Sumeth said.
On Wednesday, Grammy's stock rose 0.7% to 14.70 baht, while the main Thai index .SETI added 0.1%.