CMO says revenues this year to fall short of original target

Business News - Tuesday December 11, 2007

EVENT ORGANISING / INDUSTRY SLOWDOWN

CMO says revenues this year to fall short of original target

Chadamas Chinmaneevong

The listed event specialist CM Organizer Plc (CMO) has warned that revenues this year will fall sharply from the company's original target of 750 million baht.

The company hopes to return to profitability in the fourth quarter, after posting a nine-month loss of 6.95 million baht.

CMO executives said three major events in the fourth quarter _ the Royal Crafts of the Land exhibition, the New Year's Eve Countdown and a HomePro event _ would help the company return to profitability for the full year.

However, chief executive Sermkhun Kunawong told analysts at a briefing at the Stock Exchange of Thailand on Friday that his company would miss its previous revenue target of 750 million baht for the year.

CMO lost a bidding contest for an exhibition marking the 60th anniversary of His Majesty the King's accession to the throne, while an event contract for the Miss Teen International Thailand contest was cancelled.

The company's revenues in the first nine months of this year totalled 462.53 million baht. Mr Sermkhun said revenues for the full year were projected at 600 million baht. The company posted a net profit of 70.49 million baht in 2006 on revenues of 785.58 million.

Management costs had increased to 459 million baht for the first nine months, compared with 450.89 million for all of 2006, he said.

Pitak Ponghirancharoen, the CMO's chief financial officer, said the company hoped that revenues next year would return to 2006 levels. He said the company had 400 million baht worth of projects on hand with revenues to be booked in 2008.

Mr Sermkhun said CMO next year would also focus on strengthening its partner networks to help reduce operating expenses.

CMO also recently established a representative office in Ho Chi Minh City to strengthen its regional presence and complement a joint venture established in Cambodia last December.

CMO invested 10 million baht for a 75% stake in Bayon CM Organizer Co, a joint venture with Cambodian broadcaster Bayon Radio and Television.

Shares of CMO closed on Friday on the Market for Alternative Investment at 1.81 baht, up 1.12%, in trade worth 192,000 baht.

By : Bangkok Post