Thai music firm RS sees 2009 profit, shares rise

BANGKOK Jan 13 (Reuters) - Thailand's RS RS.BK said on Tuesday it would turn a profit this year after an expected net loss of 300 million baht ($9 million) in 2008, thanks to high-margin businesses.

The country's second-largest entertainment group also expected a 10 percent rise in 2009 sales, above market forecasts, Chief Executive Surachai Chetchotisak told Reuters.

"With a focus on high-margin businesses -- digital, in-store media and television -- we believe this year we're going to see profits," Surachai said, adding a shortfall in Euro 2008 broadcasting revenue would drag 2008 sales down to 2.38 billion.

Surachai gave no specific forecasts, but one analyst on Reuters Estimates expected the firm to report a net profit of 13 million baht in 2009 on revenue of 2.09 billion baht.

The news briefly sent the shares up over 3 percent to 1.22 baht, a more than three-week high, outperforming the overall index .SETI. The stock has risen 10 percent so far this year after losing 63 percent in 2008.

RS, which had said it would post a loss for the second year in 2008, would spend roughly 80 million baht to make four films, Surachai said.

In 2007 the company posted a net loss of 122 million baht on sales of 2.5 billion.

The company, whose sales of songs through mobile phones and the Internet account for 66 percent of revenue, had shifted away from the CD business to higher-margin sectors like mobile downloads and TV programmes to compete with rival GMM Grammy GRAM.BK.

At the midday break, RS shares were up 1.69 percent at 1.20 baht. The main index was 1.67 percent lower. ($1=34.87 baht) (Reporting by Manunphattr Dhanananphorn; Writing by Ploy Chitsomboon; Editing by Alan Raybould)