Thai music firm RS expects net loss in 2007

BANGKOK, Jan 15 (Reuters) - RS PCL RS.BK, Thailand's second-largest entertainment group, said on Tuesday it expected to report a net loss in 2007 after a 155 million baht profit a year earlier as cancelled shows hit earnings.

A better fourth quarter in 2007 would not be enough to offset losses in the first nine months, when RS reported a net loss of 77.2 million baht after a 112.5 million baht profit a year earlier, finance chief Darm Nana told reporters.

“Our final quarter improved but won’t be good enough to cover losses in the previous nine months” caused chiefly by the cancellation of a show by magician David Copperfield, he said.

One analyst polled by Reuters Estimates had forecast a 146 million baht ($4.4 million) net profit in 2007 and a 179 million baht profit for 2008.

The firm, however, expected its gross margin to rise to 30 percent in 2008 from last year’s 25 percent and planned to expand into new businesses, Darm said, declining to elaborate.

At the midday break, RS shares were unchanged at 2.80 baht and the main index .SETI was 0.19 percent lower. ($1 = 33.12 Baht) (Reporting by Saranya Suksomkij; Writing by Ploy Chitsomboon; Editing by Michael Battye)