Thai GMM Grammy 2007 net profit beat forecasts

BANGKOK, March 3 (Reuters) - GMM Grammy GRAM.BK, Thailand's largest music and entertainment firm, reported a better than expected 141 percent rise in 2007 net profit on Monday as higher income from films and concerts offset flat music sales.

Grammy, 79-percent owned GMM Media PCL GMMM.BK, 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 percent at 10.20 baht at 0439 GMT, when the main index .SETI was up 0.35 percent.

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

Grammy, valued at $166 million, had a 70 percent 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 percent rise in Grammy's 2008 earnings.

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

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