GMM Media's managing director Saithip Montrikul Na Ayudhaya, said the company, formerly known as A-Time Media, decided on May 1 to cancel a contract for management of Buzz FM. The concession for operating on its FM 88 MHz frequency, which is due to expire later this year, will be returned to the Public Relations Department on June 1.

In March, GMM Media joined with RNT Television Co Ltd to adjust the FM 88 MHz frequency to suit Buzz FM.

Hardware to receive Buzz FM was to be installed in the Bangkok Mass Transit Authority's 7,000 buses, and the company expected the number of passengers - or listeners - would be five million per day. RNT Television committed to an investment of Bt50 million for the frequency adjustment while GMM Media took responsibility for production and marketing. Revenue from advertising on Buzz FM was expected to reach Bt40 million per month and the two companies agreed to share the benefits equally.

Saithip said RNT Television has concluded that it cannot install the equipment in the buses as well as resolving problems of frequency jamming.

In addition, she said, firms have cut down their advertising budgets continuously as a result of the economic slowdown and political uncertainty.

"We decided to cancel the programme production for Buzz FM to reduce our production costs amid the economic slowdown," Saithip said.

This year, GMM Media will focus on the management of its four main stations: Banana Radio FM 89 MHz, Hot Wave FM 91.5 MHz, EFM 93.5 MHz and Green Wave 106.5 MHz.

Saithip said the company has set aside Bt120 million to arrange promotional activities both domestically and internationally.

GMM Media reported revenue of Bt653.1 million in the first quarter, up 12 per cent on the corresponding period of last year. Net profit was Bt5.17 million, down 87 per cent from last year.