SET Announcements

February 28, 2005 To: President, Stock Exchange of Thailand. Re: Submission of Financial Statements for the Year 2004. Enclosures: A copy of Financial Statements for the Year 2004 and the relevant management discussion and analysis. We are sending you herewith the enclosed financial statements of the company and the consolidated statement of the group for the year 2004 ended December 31, 2004, which were audited by the Auditor and our Audit Committee has already reviewed them. Prior to the beginning of the year 2004, we had expecting higher growth of ad-spending creating from macro- economic growth and the more intense competitions which come with the growth thus increased our rates in the later part of 2003, and increased our business opportunities by expanding our primetime and redeveloped certain time slots outside the primetime. As a result, our costs and operating expenses have increased and competition within the industry had been stimulated. Even we achieved a great success in redeveloped certain non-primetime slots and created quite a substantial revenue growth, but our primetime did not fully fill up, as the total ad-spending did not grow as much as anticipated, thus had lowered our operating margin and reduced our net profit to Baht 1,602 millions as discussed further in the attached management discussion and analysis. Please be informed accordingly. Sincerely Yours, (Chathai Thiamtong) Vice President - Finance BEC World Plc. Consolidated Financial Statements for the Year 2004 Management Discussion and Analysis: Operating Results: The net profit of BEC World group for the year 2004 is Baht1,602 millions, lower than that of the last year by Baht368 millions thus a drop of 19 percent as the costs and expenses were increased at a higher rate than that of the revenue as a result of our expansion of primetime and the efforts to create a better opportunity outside the primetime in anticipation of higher growth of ad-spending creating from macro-economic growth and the more intense competitions which come with the growth, but the growth of ad-spending did not come as much as expected resulting a much lower growth of our advertising revenue and the drop of our operating margin. Revenue: For the year 2004 BEC World group had Baht 6,472 millions, 4 percent higher that that of the last year as our ticketing and other services revenues grew up 37 percent as the audience had better purchasing power and were more willing to come out to join our events as compared with last year. Advertising revenue did not show any growth despite our great success in redevelop our non-primetime as our primetime did not fully fill up as the total ad-spending did not grow as much as anticipated while the competition from other operators were more intense. Our share of our associates' profit improved substantially. However, the other income which comprises mostly returns on investment of our excess cash was lower down in line with the decline of interest rate. Costs and Operating Expenses: Costs of sales increased 19 percent when compared with that of the last year, a bigger portion is the costs of BEC-Tero's events which were increased in line with the revenues, the other portion is an increase of our programming costs as a result of us expanding our primetime by introducing another local family drama together with our efforts to create a better opportunity outside the primetime, such as the new local drama show in the early afternoon during the weekdays, which are our investments in preparations for the anticipated higher growth of ad-spending creating from macro-economic growth and the more intense competitions which come with the growth. The selling and administration expenses also increased from the last year's level by 15 percent partly because of the increase associated with the increased numbers and the diversity of events organized within the year and partly because of the move into the new expanded office. Financial positions: Our total assets at the end of the year 2004 amounting to Baht 7,565 millions, increased when compared with that at the end of last year as a result of the expansion of our business as discussed earlier. 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 also has higher liabilities as trade creditors increased in line with higher investment in programming. The Shareholders' equity as at December 31, 2004 increased 9 percent from level at the end of previous year to Baht6,320 millions.