SET Announcements

November 12, 2009 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, 2009, which were reviewed by the Auditor and our Audit Committee has already reviewed them. BEC World group was able to increase it net profit up 25.6% higher than that of the previous quarter, Baht153 millions more; making Baht752 millions as its net profit for the shareholders of the group. Our advertising income increased 1.6% quarter-on-quarter in line with the recovery of the industry. The profitability of our "concerts & shows" business is also higher. Our operating costs and expenses were lower down as we had additional items in the previous quarter on the 39th anniversary of our "Channel 3" and during this quarter we also were able to collect the long outstanding debts which we had fully provided for during this quarter of last year. When comparing our results year-on-year, we continue having higher advertising revenue as same as the previous quarter, but at a higher growth rate. However, our licensing revenue, our other services revenue and our other revenue were all lowered down while our services costs increased as we invest further in expanding our primetime thus the growth rate of our net profit is just at 2.3%, increasing our profit up only Baht16 millions, 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 2009 Management Discussion and Analysis: Business Environment: Nielsen Media Research (Nielsen) reported that the industry, advertising expenditure through television (adex), has recovered since the beginning of the 3rd quarter. The adex has continued increasing year-on-year (YoY) at a higher growth rate every months throughout the quarter, recovers its losses incurred in the previous quarter; makes the 3rd quarter to be higher than the 2nd quarter, even the 2nd normally is the bigger one. When reviewed the report in details, it is obvious that several big and mid-size advertisers have increased their adex both from the previous quarter and prior year levels; it's a strong evidence of diversity, strength and growth opportunity of the industry, as usual. Structure Changes: During the 3rd quarter of 2009, the BEC World group was substantially unchanged. Operating Results: Due to the accounting policy for investments, 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 any confusion. BEC World group was able to increase it net profit up 25.6% higher than that of the previous quarter, Baht153 millions more; making Baht752 millions as its net profit for the shareholders of the group. Our advertising income increased 1.6% quarter-on-quarter in line with the recovery of the industry. The profitability of our "concerts & shows" business is also higher. Our operating costs and expenses were lower down as we had additional items in the previous quarter on the 39th anniversary of our "Channel 3" and during this quarter we were also able to collect the long outstanding debts which we had fully provided for during this quarter of last year. When comparing our results year-on-year, we continue having higher advertising revenue as same as the previous quarter, but at a higher growth rate. However, our licensing revenue, our other services revenue and our other revenue were all lowered down while our services costs increased as we invest further in expanding our primetime thus the growth rate of our net profit is just at 2.3%, increasing our profit up only Baht16 millions. Revenues: Our advertising income in the third quarter of this year was increased higher than that of the prior quarter by 1.6%, it is another phenomenal year which the 3rd quarter is better than the previous one as normally the 2nd quarter is a better one; and it is also 2.8% higher year-on-year. This is an evidence of the recovery of the industry we did also able to increase our air-time rates on certain day parts and benefited from expansion and shuffling of prime-time slots. The concerts and shows revenue is higher quarter-on-quarter as the number of shows reduced in the previous quarter in line with the epidemic of the flu, and it is also higher year-on-year even the tennis tournament this year finished in the 4th quarter. However, our licensing revenue, our other services revenue and our other revenue were all lowered down in line with the season and macro economic problems both domestically and in overseas markets where we did have businesses with. Costs and Operating Expenses: Our costs and operating expenses in the 3rd quarter this year are lowered down both quarter-on-quarter and year-on-year except the cost of services which increased year-on-year as we changed our programming chart to have more of our own shows and expanded our prime-time. The administrative expenses reduced a lot, quarter-on-quarter as we had additional items in the previous quarter on the 39th anniversary of our "Channel 3" and the losses of our associated "Virgin BEC-Tero Radio" is lower down, and year-on-year as during this quarter we were also able to collect the long outstanding debts which we had fully provided for during this quarter of last year. Financial positions: Our total assets at the end of the 3rd quarter decreased when compared with balances at the end of the prior year as cash and short term investment of our cash decreased after the payments of our prior year's final dividends and corporate income tax in the 2nd quarter and the interim dividend and half year corporate income tax during the quarter. Our liabilities also decreased from that level at the end the prior year because of the tax payments. Our shareholders' equity slightly decreased after those mentioned two dividend payments; however BEC World's financial positions are strong as usual.