GMM Grammy sees good 2008

Chairman Paiboon Damrongchaitham said GMM Grammy expected to double its net profit margin from 3 per cent of revenue in 2006 to about 10 per cent last year. The group also expects its net profit to be 50-per-cent better than last year.

GMM Grammy has set a five-year plan to expand into broadcasting by acquiring licences allowing private companies to own and operate local television and radio stations.

Its new Internet portal G Member will officially open in April to allow subscribers to enjoy its entertainment content, including music downloads and pay-per-view concerts.

GMM Grammy is also interested in applying soon for local licences for such media as satellite and cable TV, as well as free-to-air television.

"We expect revenue to exceed Bt8 billion this year, up 7 per cent from 2007," said Paiboon.

GMM Grammy expected to show Bt7.4 billion in revenue for last year, up 25 per cent from 2006.

Paiboon said music would remain the main revenue source. The company expects to generate Bt4 billion from music this year, up 11 per cent from last year. Media content is expected to show revenue of Bt3.6 billion last year - a leap of 20 per cent from 2006.

GMM Media, the group's media subsidiary, expects to achieve Bt3.5 billion in revenue this year, of which 39 per cent will come from the production of television programmes, 21 per cent from radio, 29 per cent from events and 7 per cent from publishing.

Paiboon said 2005 and 2006 were difficult years for GMM Grammy, which suffered a big decline in sales of CDs and DVDs. The group could not earn sufficient revenue from digital channels for the use of its music and other entertainment content.

GMM Grammy recorded a net loss in 2005 while achieving a net profit of only Bt400,000 in the first quarter of 2006. The group was due to make a strong rebound last year, with a net profit of more than Bt300 million expected.

"I spent two significant years turning around our business by transforming GMM Grammy from a music records firm to a truly total music company," said Paiboon.

Kwanchai Rungfapaisarn

The Nation