11 August 2004
Management Discussion and Analysis
BEC World Plc.
Consolidated Financial Statements for 2nd Quarter of 2004
Management Discussion and Analysis:
Operating Results:
The net profit of BEC World group for the 2nd quarter of 2004 is
Baht548 millions, higher than that of the previous quarter by
Baht117 millions thus an improvement of 27 percent as the group was
able to increase its revenue, both the advertising sales revenue
and revenue from other services. However, when compared this net
profit with that of the same quarter of last year it is still
Baht78 millions lower (i.e.-12%) due to higher costs and operating
expenses. This year the group does not have the tax benefits that
it enjoyed last year, as well
Revenue:
Advertising sales revenue for the 2nd quarter was Baht1,557
millions,20% higher than that of the previous quarter, partly
because of seasonal factors. This is also 3% higher than that of
the same period of last year as we were able to improve our
non-primetime business even the loadings during the primetime were
not as good as last year. Revenue from other services is higher
than that of the previous period and that of the same period of
last year as we were able to organize more events in line with the
improvement of the general environment. However, other income,
which comprises mostly returns on investment of our excess cash,
was lower down in line with the amount of the cash after we had
paid an interim dividend last December and the final dividend in
May.
Costs and Operating Expenses:
Costs and operating expenses increased when compared with that of
the previous period and that of the same period of last year in
line with the increased revenue. The efforts to create a better
opportunity outside the primetime together with the increase in the
number of events we had organized and the fact that we were just
moved into the new office are the main reasons of the inflation of
costs and operating expenses.
Financial positions:
Our total assets at the end of the 2nd quarter increased when
compared with that at the end of previous period and that at the
end of last year in line with the increased amount of our net
earnings. Majority of our assets is still in the form of cash,
deposits with financial institutions or short-term investment in
fixed income funds as usual, but more in the form of cash or cash
equivalent to reduce the risk on interest rate change. In term of
liabilities, the group has trade creditors, accrued expenses and
tax payable in aggregate at the same level as that of the previous
period. Shareholders' equity increased to Baht6,405 millions.