SET Announcements

May 08, 2007 To: President, Stock Exchange of Thailand. Re: Submission of Financial Statements for the 1st Quarter of this Year. Enclosures: Financial Statements for the 1st Quarter of this Year 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 1st quarter of this year ended March 31, 2007, which were reviewed by the Auditor and our Audit Committee has already reviewed them. BEC World group was able to made Baht 541 millions as its net profit for the 1st quarter of this year, higher than that of the previous quarter by 72 percent or Baht 226 millions and Baht105 millions higher that that of the same quarter of prior year or an improvement of 24%, as the advertising income increased 125 millions higher than that of the previous quarter and 113 millions higher that that of the same quarter of prior year, from the higher utilization rate of our commercial air-time and from air-time rate increases on certain day parts, while our costs were lower, as we had reduced the number of local drama; and the reduction of the selling expenses when compares with previous quarter as those of the previous quarter were exceptionally high. Even our selling and administration expenses increased when compare with those of the quarter of the prior year but at a much lower rate than the increase of revenue, therefore, our profit and our operating margin had improved substantially, as discussed further in the attached management discussion and analysis. Please be informed accordingly. Sincerely Yours, (Chatchai Thiamtong) Vice President - Finance BEC World Plc. Consolidated Financial Statements for the 1st Quarter of the year 2007 Management Discussion and Analysis: Business Environment: Advertising expenditure through television during the first quarter of 2007 had dropped slightly around 5% when compares with the previous quarter, as there are unpleasant incidents around the new year eve, but it is quite usual anyhow to see the reduction when compares the 1st quarter with the previous quarter. However, it is still 4% higher than that of the same quarter of last year. When reviewed in detail, many of the big advertisers are still increase their ad-spending, compares with prior year, at a high rate, those who had reduced their spending are in music, leisure, direct selling, government related, alcoholic beverages, communication, etc. Many small advertisers still increased their spending a lot continuously from the second half of the prior year. Banks and insurance companies also continue increase their spending and now are listed among big advertises. Channel 3's growth rate still increases at a higher rate than the industry pushing our market share up further. Operating Results: Due to the change in accounting for investments, from the equity method to cost method in separate (the company only) financial statements of the company, the reported profit as shown in the separate statements is difference from that shown in the consolidated statement. This MD&A will discuss those numbers shown in the consolidated statement in order to avoid confusion. BEC World group was able to made Baht 541 millions as its net profit for the 1st quarter of this year, higher than that of the previous quarter by 72 percent or Baht 226 millions and Baht105 millions higher that that of the same quarter of prior year or an improvement of 24%, as the advertising income increased 125 millions higher than that of the previous quarter and 113 millions higher that that of the same quarter of prior year, from the higher utilization rate of our commercial air-time and from air-time rate increases on certain day parts, while our costs were lower, as we had reduced the number of local drama; and the reduction of the selling expenses when compares with previous quarter as those of the previous quarter were exceptionally high. Even our selling and administration expenses increased when compare with those of the same quarter of the prior year but at a much lower rate than the increase of revenue, therefore, our profit and our operating margin had improved substantially. Revenues: Our advertising income in the first quarter of this year was increased at higher rate than that of the industry; it increased higher than that of the previous quarter by 8.4% and also higher year on year by 7.5%. The increase came from higher utilization rate of our commercial air-time and from air-time rate increases on certain day parts. The concerts and shows revenue is also higher "quarter on quarter" and "year on year" as the number of round of the "Disney on Ice" show is higher in this March. Costs and Operating Expenses: Costs of services are lower "quarter on quarter" and "year on year" as we had reduced the number of local drama Costs of concerts and shows increased in line with revenue. The selling expenses dropped a lot when compares with previous quarter as those of the previous quarter were exceptionally high. When compare with those of the same quarter of the prior year our selling and administration expenses increased in line with the inflation. Financial positions: Our total assets increased when compared with balances at the end of the previous year as cash and short term investment of our cash increased in line with the improved profit. Our liabilities also increased slightly from the level at the end the prior year as corporate income tax is higher. Our shareholders' equity increased because of higher profit. BEC World's financial positions are strong as usual.