UPDATE 1-Thai GMM Grammy Q1 net profit more than doubles

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BANGKOK, May 16 (Reuters) - GMM Grammy GRAM.BK,
Thailand's largest music and entertainment group, beat
expectations with a 156 percent rise in first-quarter net
profit on Thursday as non-music sales boosted growth.

Grammy, which has a 70 percent share of the Thai music
industry, posted January-March net profit of 105.69 million
baht ($3.3 million), or 0.22 baht per share, up from 41.3
million baht a year earlier, but down from 183.9 million in the
last quarter.

The consensus forecast from five analysts polled by Reuters
was 80 million baht.

Music sales fell 21 percent at 576.4 million baht as it
released few albums but total first-quarter sales were helped
by a 25.3 percent rise in revenues from television and a 31.6
percent increase at its events business, which represents
around 15 percent of sales.

GMM Grammy, which competes with number two RS RS.BK, also
reported a 26.3 percent rise in revenues from its radio
business.

Expenses at the company were 1.49 billion baht, down 3.13
percent from 1.54 billion baht in the first quarter from a year
ago as the company cut down on costs.

"The main drivers for Grammy would be a shift to focus on
margin, strong seasonal effect in Q2 and effective cost
control," Phillip analyst Siam Tiyanont said.

Grammy is expected to post a slight 0.06 percent rise in
net profit to 503 million baht, according to six analysts
polled by Reuters Estimates.

Annual results should also get support from rising income
from its television and event management subsidiary, GMM Media
GMMM.BK, which also posted a 85 percent surge in
first-quarter net profit to 36.9 million baht.

Grammy, valued at $192 million, rose 42 percent in the
January-March period, outperforming a 4.8 percent fall in the
main Thai index.

On Thursday, Grammy's stock closed unchanged at 12.60 baht,
GMM Media was up 0.8 percent at 12.60 baht while the main index
.SETI was 0.79 percent higher.
($1=32.33 Baht)
(Reporting by Ploy Chitsomboon; Editing by Louise Heavens)