SET Announcements

November 11, 2008 To: President, Stock Exchange of Thailand. Re: Submission of Financial Statements for the 3rd Quarter of this Year. Enclosures: Financial Statements for the 3rd 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 3rd quarter of this year ended September 30, 2008, which were reviewed by the Auditor and our Audit Committee has already reviewed them. The group, BEC World, was able to made Baht735 millions as its net profit for the 3rd quarter of this year, almost the same amount it made in the previous quarter; even it made higher profit from its main business as it incurred loss in organizing an ATP Tennis Tournament and suffered from setting up of provision for long outstanding doubtful debt incurred in past tournaments.However, this is an improvement of 22 percent or Baht131 millions higher than that of the same quarter of the prior year, as the advertising income increased 15 percent or Baht 272 millions higher; from air-time rate increases on certain day parts, from expansion of prime and super-prime slots and from the higher utilization rate of our commercial air-time, whereas our costs were also higher but at a lower growth rates; as we changed our programming chart and expanded our prime and super-prime slots as well as incurred additional costs in covering the Olympic, while the selling and administration expenses also increased in the quarter as we had set up additional provision for long outstanding doubtful debt incurred in organizing the ATP tennis tournaments in the past but it is not such a substantial amount; therefore, our profit and our operating margin had improved substantially year-on-year, 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 3rd Quarter of the year 2008 Management Discussion and Analysis: Business Environment: Throughout the 3rd quarter of this year, advertising expenditure through televisions (adex) declined month-on-month every month, according to Nielsen Media Research (Nielsen), even we were covering the Beijing Olympic during the quarter; thus the adex in the 3rd quarter is 6% lower than the previous quarter.However, Nielsen also reported that Channel 3 and Channel 11 (now re-branded as NBT who had covered the Olympic much longer than other channels) still generated higher ad-revenue quarter-on-quarter. This might partly be a resultant of rate increases which we, channel 3, announced during the middle of the 2nd quarter. The industry as reported by Nielsen, is also 9% lower year-on-year in the 3rd quarter; whereas every channels except "T-ITV / T-PBS" were all showing higher ad-revenue as in the second half of the prior year "T-ITV" was 13% higher (from its first half base) and represented more than 15% of the industry in that year. Anyhow, since "T-ITV/T-PBS" is no longer a commercial network started from middle of January this year, thus every other channels are gaining market share. When reviewing Nielsen's adex report in detail; not all every advertiser had reduced their spending. There are several advertisers, except those who used to be a big supporter of "T-ITV", have increased their advertising spending year-on-year; and several of those have also increased their spending by more than 20% year-on-year. They are the strong indicators of the diversity, resiliency and great growth potential of the industry. 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. The group, BEC World, was able to made Baht735millions as its net profit for the 3rd quarter of this year, almost the same amount it made in the previous quarter; even it made higher profit from its main business as it incurred loss in organizing an ATP Tennis Tournament and suffered from setting up of provision for long outstanding doubtful debt incurred in past tournaments. However, this is an improvement of 22 percent or Baht131 millions higher than that of the same quarter of the prior year, as the advertising income increased 15 percent or Baht 272 millions higher; from air-time rate increases on certain day parts, from expansion of prime and super-prime slots and from the higher utilization rate of our commercial air-time, whereas our costs were also higher but at a lower growth rates; as we changed our programming chart and expanded our prime and super-prime slots as well as incurred additional costs in covering the "Beijing Olympic", while the selling and administration expenses also increased in the quarter as we had set up additional provision for long outstanding doubtful debt incurred in organizing the ATP tennis tournaments in the past but it is not such a substantial amount; therefore, our profit and our operating margin had improved substantially year-on-year. Revenues: Our advertising income in the third quarter of this year is about the same amount as we made in the prior quarter but is higher year-on-year by 15 percent. The increase came from air-time rate increases on certain day parts, from expansion of prime and super-prime slots - which were needed to accommodate higher than anticipated demands, and from the higher utilization rate of our commercial air-time. The concerts and shows revenue is higher "quarter-on-quarter" as we organized an ATP Tennis Tournament in the 3rd quarter of the year as usual, however the revenue from the tournament is lower "year-on-year" thus caused a larger loss from the tournament this year. Costs and Operating Expenses: Costs of services are lower "quarter-on-quarter" even we incurred additional costs in cover the "Beijing Olympic" as costs of musical contest programme are lower in line with the lesser numbers of hours when compares with prior quarter, and partly because of the lower amortization of our programming costs as the numbers of local dramas which had been finished in the prior quarter are higher than normal. However, it is higher "year-on-year" as we incurred additional costs in covering the Olympic and we changed our programming chart and expanded our prime-time to enhance our opportunity to generate higher revenue and profit; and as we expanded our super-prime slots to accommodate higher than anticipated demands. Costs of concerts and shows increased "quarter-on-quarter" as we organized an ATP Tennis tournament in the 3rd quarter of the year as usual but reduced "year-on-year" in line with revenue. The selling and administration expenses also increased in the quarter as we had set up additional provision for long outstanding doubtful debt incurred in organizing the ATP tennis tournaments in the past but it is not such a substantial amount. Financial positions: Our total assets decreased when compared with balances at the end of the previous year as at the total amount of dividends which we paid twice during this year are slightly higher than the reported profit thus caused a lower balance of total cash and short term investment of our cash balances. An investment in one of our associated company was reclassified as long term investment in marketable securities, in this quarter when our interest in that company was diluted, and being shown on the balance sheet at market price; whereas the profit from revaluation of this investment is shown directly in our shareholders' equity. Our liabilities are also reduced from the level at the end the prior year after annual corporate income tax and half year tax were paid. Our shareholders'equity also decreased slightly in line with the dividend payments as discussed earlier. BEC World's financial positions are still strong as usual.