SET Announcements

August 10, 2010 To: President, Stock Exchange of Thailand Re: Submission of Financial Statements for the 2nd Quarter of this Year, and the reasons of the changes more than 20%. Enclosures: Financial Statements for the 2nd 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 2nd quarter of this year ended June 30, 2010, which were reviewed by the Auditor and our Audit Committee has already reviewed them. BEC World group was able to made Baht 779 millions as its net profit for its shareholders in the 2nd quarter of this year, higher than that of the same quarter of the previous year by 30 percent or Baht 180 millions more; as our advertising income increased even our costs also went up as we are expanding our businesses further since the beginning of the year, by introducing more of our owned programmes and extended the programmes which have higher costs. Our selling expenses are slightly higher but our administration expenses dropped a lot as we had special activities last year. When compares quarter-on-quarter with the previous quarter our profit increased by Baht 43 millions, 6 percent higher, in line with higher advertising income even we did not have profit from organizing concerts and shows as we did in the previous quarter, 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 2nd Quarter of the year 2010 Management Discussion and Analysis: Business Environment: The growth momentum which was started at the beginning of the second half of the previous year has built up an accelerated growth rate throughout the year to end of this year's first half. Nielsen Media Research (NMR) reported that advertising expenditure through television (TV-Adex) during the second quarter of 2010 had jumped 10% when compares with the previous quarter as this quarter is normally the high-season, and the TV-Adex is 21% higher than that of the same quarter of last year even the growth rates stalled a bit in May amid the chaos in the city. However when situation is back to normalcy the growth accelerated further in June partly because of the live coverage of the FIFA World Cup (April +20.2% YoY; May +12.4% and June +29.5%). NMR also reported that there are a number of new advertisers entering the industry and there also are a number of advertisers who have increased their spending through television at a high rate; confirm the up-ward trend of the industry. Structure Changes: During the second quarter of 2010, the BEC World group was almost unchanged except that we had transformed "the BEC-Tero Sasana Foot- Ball Team", as required by the rules of the Thai Foot-Ball Association,to be a separate legal entity as another subsidiary company to be known as "BEC-Tero Sasana Co., Ltd." which is still 99.99% owned by "BEC-Tero Entertainment" a subsidiary of BEC World. 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 made Baht 779 millions as its net profit for its shareholders in the 2nd quarter of this year, higher than that of the same quarter of the previous year by 30 percent or Baht 180 millions more; as our advertising income increased even our costs also went up as we are expanding our businesses further since the beginning of the year, by introducing more of our owned programmes and extended the programmes which have higher costs. Our selling expenses are slightly higher but our administration expenses dropped a lot as we had special activities last year. When compares quarter-on-quarter with the previous quarter our profit increased by Baht 43 millions, 6 percent higher, in line with higher advertising income even we did not have profit from organizing concerts and shows as we did in the previous quarter. Revenues: As we expanded our businesses further since the beginning of the year by introducing more of our owned programmes and extended the programmes which have higher costs, our advertising income in the second quarter of this year was much higher year-on-year by 29% and 5% higher quarter- on-quarter even the chaos in the city forced us to be blacked out and experienced some business disruptions for a few days in May, as we also benefited from momentum of the industry as the second quarter is a "high-season". The concerts and shows revenue is much lower quarter-on- quarter and year-on-year in line with the environments in the second quarter. Our other services and royalty income increased slightly year-on- year and quarter-on-quarter as we had higher royalty income from the FIFA World Cup. Costs and Operating Expenses: Costs of services increased year-on-year as we expanded our businesses further since the beginning of the year by revising our broadcasting programme chart by introducing more of our owned programmes and extended the programmes which have higher costs to enchant our opportunity to increase our revenue and profit. The costs also went up quarter-on-quarter from our live coverage of the FIFA World Cup. Our selling expenses are slightly increased but our administration expenses are much lower year-on-year as we had special activities last year. Financial positions: Our total assets increased when compared with balances at the end of the prior year as trade-account-receivables, cash and short term investments increased in line with the increased revenue and profit even we had paid our prior year's final dividends and corporate income tax during the quarter; whereas our non-current assets which comprise mostly by our investment in equipment, deferred right to use assets and deferred programming costs are about the same. Our liabilities increased as accrued expenses at the cut-off date are higher and also because the corporate income tax is higher in line with increased profit. Our shareholders' equity decreased because of the prior year final dividend payment as mentioned. BEC World's financial positions are strong as usual.