It might trim Bt30 million off its original target of Bt700 million, said chief operating officer Surapong Triamchanchai.

Surapong said yesterday that the economic situation, caused by oil price hikes and political uncertainty, meant Traffic Corner had to control its operating costs.

As well, the negative situation has affected corporate spending on advertising in the firm's media, including its magazines. As a result, it is not hiring additional staff.

The company operates three major businesses involving news, sports and entertainment on various media outlets, including television, radio, newspapers and magazines.

Its operations in the first quarter achieved the company's sales target and reduced its loss figure to Bt12 million for the first three months, compared with a loss of Bt51 million in the corresponding period last year.

Surapong said he was confident that sales for the first half of the year would reach Bt300 million. He also expects the company to be trading in the black this year. Last year, it recorded a net loss of Bt148.95 million.

He said Traffic Corner had closed some businesses that were not performing well, including A Day weekly magazine and an event-management business. The company now has two magazines - Knock Knock and Bangkok Today - that have not yet reached break-even point, but are performing well.

The company launched a new magazine yesterday called Men's Health, featuring men's lifestyles. Its content includes health, fitness, sex, fashion, and stress release. It expects the new magazine to generate Bt50 million in sales after investment of Bt16 million.

It plans to spend Bt10 million on marketing the new magazine in its first three months. Men's Health is its second international magazine published in a Thai version.

The company is also planning to launch more magazines for men later this year and early next.

The market for men's magazines is still bright, whereas that for women's magazines has reached saturation, Surapong said.

The magazine industry is worth between Bt7 billion and Bt8 billion, and men's magazines account for Bt2 billion of this. Sales of men's magazines grew by 20 per cent to 30 per cent last year, while the value of the whole industry grew by 7 per cent to 10 per cent, he said.

Traffic Corner hopes a joint venture with giant Singaporean publisher SPH Magazine Pte Ltd will enable it to bring other international magazines to the Thai market.

SPH's expertise in magazine distribution is also expected to boost the firm's competitiveness, Surapong said.

Nitida Asawanipont

 The Nation