SET Announcements

February 19, 2009 To: President, Stock Exchange of Thailand. Re: Submission of Financial Statements for the Year 2008 and reasons which caused bigger than 20% differences. Enclosures: Financial Statements for the Year ended December 31,2008. 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 ended December 31, 2008, which were audited by the Auditor and our Audit Committee has already reviewed them. For the year 2008, the group, BEC World, was able to made Baht2,875 millions as its net profit for the shareholders of BEC World, 27.7 percent higher than the previous year, i.e. Baht623 millions more; as the advertising income increased 16.7 percent or Baht1,172 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 and expenditures were also higher than the prior year as we changed our programming chart and expanded our prime and super-prime slots in addition to the higher inflation as it happened during the year and we also incurred additional costs in covering the Beijing Olympic; but an increase in costs and expenditures is at a lower growth rates than that of the revenue, therefore, our operating margin and our profit improved substantially year-on-year, 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 2008 Management Discussion and Analysis: Business Environment: Advertising expenditure through television (adex) during the year 2008 as reported by Nielsen Media Research (Nielsen) dropped when compares with the prior year almost every month as "T-ITV" was transformed into a non-commercial "T-PBS" in the middle of January 2008; since Nielsen reported that "T-ITV" holds quite a significant portion of market share in TV-Adex, i.e. 15 percent in 2007. Anyhow, as there was a transition from "iTV" to "T-ITV" during the 2nd quarter of 2007 thus T-ITV's market share was lowered down during such period and allows year-on-year (YoY) growth in the 2nd quarter of 2008 and makes that quarter the best quarter of 2008 for the industry that year. However, the drop of adex for the year was reported at only 4.4 percent thus every other channels apart from "T-ITV/T-PBS" is getting better year-on-year; whereas Channel 11(which was re-branded as NBT) who had covered the Beijing Olympic much longer than other channels was reported as the one with the biggest growth rate. Anyhow, 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 "iTV / T-ITV",have increased their advertising spending YoY; and several of those have also increased their spending by more than 20% and there are a lot of new advertisers, as well; thus caused a reduction in the share of voice of most of the advertisers. They are the strong indicators of the diversity,resiliency and great growth potential of the industry which had allowed our channel 3 and other channels to raise the rate-card up on certain day-parts since the beginning of the year as well as another round around the mid of 2nd quarter before the bad news from both outside of the country and the domestic one hit the macro-economy pulling the demand down consecutively during the last 2 months of the year, even the drops were still a minor one. Structure Changes: In 2008, the BEC World group was almost unchanged except that we had disposed out during the 1st quarter, of all our shares in "ThemeStar" - an associated company which always incurred loss; and the reclassification of an investment in "CVD", once an associated company, as "long term investment in marketable securities", in the 3rd quarter when our interest in that company was diluted and now being shown on the balance sheet at market price; whereas the profit from revaluation of this investment is shown directly in our shareholders' equity. We also excluded "Mobi (Thai) Co.,Ltd. and "Digital Factory Co., Ltd", (both have been a dormant company for awhile already) out of our consolidation when we are liquidating these 2 companies around the end of the year. Operating Results: Due to the cost method accounting policy on "investments", the reported profit as shown in the separate (the company only) financial statements of the company 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 any confusion. For the year 2008, the group, BEC World, was able to made Baht2,875 millions as its net profit for the shareholders of BEC World, 27.7 percent higher than the previous year, i.e. Baht623 millions more; as the advertising income increased 16.7 percent or Baht1,172 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 and expenditures were also higher than the prior year as we changed our programming chart and expanded our prime and super- prime slots in addition to the higher inflation as it happened during the year and we also incurred additional costs in covering the Beijing Olympic; but an increase of costs and expenditure is at a lower growth rates than that of the revenue, therefore, our operating margin and our profit improved substantially year-on-year, Revenues: Our advertising income in the year 2008 is higher 16.7 percent year-on-year, an increase of Baht1,172 millions. The increase came 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 derived from changes in programming chart.The concerts and shows revenue is lower "year-on-year" as we reduced the number of events and got less sports in organizing an ATP Tennis Tournament in the 3rd quarter of the year as usual, which caused a larger loss from the tournament this year. Costs and Operating Expenses: Costs of services are higher by 4.2 percent year-on-year even we incurred additional costs in covering the "Beijing 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 reduced in line with the reduction of the number of events. The selling expenses increased 13.4 percent in line with revenue growth. The administration expenses increased just only 2.2 percent even we had, in the 3rd quarter, set up additional provision for long outstanding doubtful debt incurred in organizing the ATP tennis tournaments in the past. In aggregate for the whole year our operating costs, i.e. costs, selling and administration expenses, increased only at 2.4 percent year-on-year; which is a strong evidence of our efforts and our ability in control our operating costs even with the higher inflation as it happened during the year Financial positions: Our total assets increased when compared with balances at the end of the previous year as cash and short term investments increased in line with the improved profit. An investment in one of our associated company was reclassified as "long term investment in marketable securities", 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 decreased slightly even our corporate income tax payable is higher. Our shareholders' equity increased in line with the improved profit. BEC World's financial positions are strong as usual.