The net loss per share was Bt0.44. Its first-quarter net loss last year was Bt91.81 million. Sales declined from Bt317.55 million to Bt176.14 million. Cost of sales rose to Bt98.66 million, or 56 per cent, compared to 44 per cent last year.

Pongsaap amortises copyright expenses by the sum-of-the-year digits method, which uses the number of months as the calculation basis. The amortisation period is limited to three years even when the copyright period exceeds three years. The method produces amortisation rates for the first, second and third years of 55 per cent, 33 per cent and 12 per cent.

Copyright amortisation in the first quarter was Bt91.29 million, mainly due to the decline in revenue from a year ago.

Kitti Kerati-thamkul, senior investor relations manager, said yesterday the company's cost-reduction plan had yet to show results, while the piracy rate was still high. The sluggish economy has also encouraged piracy.

A steady stream of promotions is set for this year to boost sales, while unprofitable branches would be closed down, he said.

"We expect to return to profit next year. We'll maintain our revenues but reduce copyright costs. The copyright amortisation next year will be only Bt40 million or less," he said.

Kiatnakin Securities said Pongsaap had suffered greatly from piracy amid the current economic slowdown, with consumer spending also dropping off. Last year the company lost Bt462 million.

Although the company expects to record lower copyright amortisation of Bt297 million this year, down from Bt505 million last year, the reduction will also hurt its wholesale revenue. Kiatnakin forecasts Pongsaap will record a net loss of Bt378 million this year.

The broker recommended "avoid" for Pongsaap stock, even though it is trading below its book value of Bt1.88.

Siriporn Chanjindamanee

The Nation