The deals are expected to be completed in the second half of next year.

Executive director Cathleen Maleenont said the drive to build up new businesses is aimed at boosting the company's income in 2007. Selling VCDs - the company's main business - is one that will not see substantial growth because of strong competition and widespread pirating of video CDs.

She said CVD Entertainment is conducting feasibility studies of about four new businesses, and will conclude whether it will invest by means of a joint venture or a takeover. It expects the new businesses will represent as much as 50 per cent of its total revenue.

"Next year, revenues will be about the same as this year - around Bt600 million to Bt700 million, or better," she said.

"Our business will be stable, in line with the overall economy. We hope that consumer confidence will recover and will boost incomes. In addition, the new businesses should help boost our sales."

Cathleen said her company recently cancelled contracts with Twentieth Century Fox and Buena Vista because the cost was too high to continue doing business with them. However, CVD still has a contract with Sony Independent.

The company has also found some substitute income by selling VCDs of BEC World's television dramas.

These sales now contribute around 10 per cent of the company's total income.

Next year, it expects to offer

VCDs of several more drama series. BEC is a major shareholder of CVD Entertainment.

CVD director Monluedee Sookpantarat said the company's new executive board also decided that investing in the stock market is too risky and will abort the company's equity investments by gradually selling stocks.

CVD currently holds stocks in three companies, with remaining investment of around Bt40 million, representing 10 per cent of its Bt427 million cash in hand.

Monluedee said the company's income this year may drop by as much as 40 per cent from last year's Bt1.03 billion, in line with the declining entertainment market.

CVD Entertainment plans to reduce its capital from 36 million to 32.40 million shares, she said. The capital reduction follows a company buy-back of 3.6 million of its shares from the stock market in 2004.