Matching STUDIO set for profit after 3 yrs

Somchai said the company - which began as a production house for ad agencies - was on course for 100-per-cent revenue growth in the first half of this year from last year' second half.

It achieved Bt187.18 million in revenue in the first quarter, of which Bt22.69 million was profit.

Somchai cited organisational restructuring, cost restructuring, the sale of Cheeze Media to its former owner last year and the improvement in the political situation early this year as the four main reasons for the turnaround.

The company restructured its organisation by looking at its core competence, which is its ability to create advertisements and integrate the use of mainstream media channels with events and new media channels, such as Internet. It has decided to make producing commercials its main focus.

Meanwhile, it will no longer stage events and shows on its own, but instead will propose event ideas to potential corporate customers and work for them as the event organiser.

The company managed to restructure costs by negotiating a lower office rental, cutting back on employee benefits such as provident fund and meals, and laying off excess workforce, Somchai said.

He said the company was not worried about the present gloomy economic and political situation, as it had already weathered many unexpected setbacks and was very carefully managing risk in everything it undertook.

The company last year generated revenue of Bt649 million while posting a loss of Bt44.65 million, while in 2006 its revenue was Bt990.8 million and loss Bt211 million.

Of last year's revenue , 52 per cent was contributed by Matching Studio, 29 per cent by Gearhead, which rents equipment for production of films and television programmes and commercials, and the rest by its other businesses.