SET Announcements

August 08, 2006 To: President, Stock Exchange of Thailand. Re: Submission of Financial Statements for the 2nd Quarter of 2006. Enclosures: Financial Statements for the 2nd Quarter of 2006 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 2006 ended June 30, 2006, which were reviewed by the Auditor and our Audit Committee has already reviewed them. BEC World group was able to made Baht465 millions as its net profit for the second quarter of 2006, higher than that of the prior quarter by 29 millions thus a plus of 7 percent and higher than that of the same period of last year by 103 percent or Baht 236 millions as the advertising income was continuously improved further since the last quarter of previous year, from the higher utilization rate of our commercial air-time, while our costs and expenses were not increased sharply as prior year. Therefore, our operating margin had improved substantially 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 2006 Management Discussion and Analysis: Operating Results: BEC World group was able to made Baht465 millions as its net profit for the second quarter of 2006, higher than that of the prior quarter by 29 millions thus a plus of 7 percent and higher than that of the same period of last year by 103 percent or Baht236 millions as the advertising income was continuously improved further since the last quarter of previous year, from the higher utilization rate of our commercial air-time, while our costs and expenses were not increased sharply as prior year. Therefore, our operating margin had improved substantially. Revenue: For the second quarter of 2006 BEC World group had Baht 1,595 millions as advertising income higher than that of the prior quarter by 97 millions (+6%) and higher than that of the same period last year by 26 percent up 325 millions. This is the results of higher utilization rates, continuing improved further since the last quarter of previous year. Copyright revenue is also increased continuously as we were able to sell our old movie and our previous series in VCD format for home entertainment. However, revenue from concerts and shows dropped substantially as we had excluded revenue of ThemeStar out from our consolidated statement this year as it had been transformed from being a subsidiary to being just an associated company at the end of last year. Costs and Operating Expenses: Costs and operating expenses had been stable and are back at normal, not increased at a high rate as happened last year as the group had completed its planned expansion programme. Costs of concerts and shows were lower down substantially as we had excluded those of ThemeStar out from our consolidated statement this year as it had been transformed from being a subsidiary to being just an associated company at the end of last year. When compared these costs and expenses on the same base, they were increased slightly in line with inflation rate from the same period of last year. Financial positions: Our total assets at the end of the quarter increased when compared with that of the end of last year in line with profit. Majority of our assets is still in the form of cash and cash equivalents as usual. However, it was lower down when compares with previous quarter after dividend and corporate income tax have been paid, thus our liabilities dropped accordingly. The Shareholders' equity as at June 30, 2006 increased when compared with that at the end of previous quarter and of the end of last year in line with the profit, now is amounting to Baht6,147 millions.