10 August 2005
Submission of F/S for Q2/2005 with MD&A
August 10, 2005
To: President,
Stock Exchange of Thailand.
Re: Submission of Financial Statements for the 2nd Quarter of 2005.
Enclosures: Financial Statements for the 2nd Quarter of 2005
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 2nd
quarter of 2005 ended June 30, 2005, which were reviewed by the Auditor
and our Audit Committee has already reviewed them, also.
BEC World group was able to made Baht229 millions as its net profit
for the second quarter of 2005, an increase of Baht 76 millions - 50 percent
higher than that of the prior quarter as the result of the increase of
advertising income. However, this profit is still lower than that of the
same period of last year by Baht319 millions as the advertising income
was sharply lower down as a consequence of the deterioration of general
economic situation which reflected in the lower utilization rate of our
commercial air-time, whereas, our costs and expenses were increasing thus
lowering down the profit margin 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 2nd Quarter of 2005
Management Discussion and Analysis:
Operating Results:
BEC World group was able to made Baht229 millions as its net profit for
the second quarter of 2005, an increase of Baht 76 millions - 50 percent
higher than that of the prior quarter as the result of the increase of
advertising income. However, this profit is still lower than that of the
same period of last year by Baht 319 millions as the advertising income
was sharply lower down as a consequence of the deterioration of general
economic situation which reflected in the lower utilization rate of our
commercial air-time, whereas, our costs and expenses were increasing thus
lowering down the profit margin.
Revenue:
Sales Revenues: 2Q05 1Q05 QoQ 2Q04 YoY
Adverting Income 1,270 1,109 160 14.5% 1,557 -288 -18.5%
Copyright and Other Services 42 75 -32 -43.4% 23 19 81.9%
Concerts and Shows 402 267 135 50.5% 126 276 218.4%
Total Sales Revenues 1,714 1,451 263 18.1% 1,707 7 0.4%
For the second quarter of 2005 BEC World group had Baht1,270 millions
as advertising income higher than that of the prior quarter by 14 percent
as industry improved from the stagnancy at the beginning of the year but
still lower that that of the same period last year by 18 percent. This is
the results of lower utilization rates achieved the quarter, especially
during the primetime, as a consequence of the softness in overall
ad-spending caused by deteriorating general economic conditions. However,
other services revenue has continued increasing for another quarter as
this year it includes revenue from shows organized outside of Thailand
by ThemeStar the new subsidiary of BEC-TERO.
Costs and Operating Expenses:
Costs of TV business were stabilized when compares with prior period but
increased when compares with the same period of last year as expansion
of primetime and an increase of local dramas were happened in the second
half of last year. Costs of other services were increased in line with
the increase of revenue especially those of the shows organized outside
of Thailand by ThemeStar the new subsidiary of BEC-TERO. The increase
of SG&A are coming from additional office costs, because of the move
into the new expanded office since the middle of last year, and the
increase in staff costs caused by salary adjustments and increase in
headcount and the inclusion of ThemeStar.
Financial positions:
Our assets and liabilities, in general, are about the same as the balance
at the end the prior year, except the deduction of cash and cash equivalent
as a result of dividend and final corporate income tax payments made in
May 2005.