Management s Discussion and Analysis on the Company s Operating Results Based on the Financial Statements for the Period between 1 January to 31 March 2006 Overview of the Company and its Subsidiary Result of Operations Unit Million Baht (Reviewed) Jan-Mar 05 Jan-Mar 06 %Change Total Revenues 813 946 16.4 TV revenues 527 580 10.1 Radio Revenues 105 177 68.6 Total Expenses 477 524 9.8 Net Profit 252 316 25.4 The 16.4% increase in total revenues was mainly a result of the increase in both television revenues and radio revenues. 1. On 1 February 2006, MCOT Plc. has launched the Phase 7 of Modernine TV, then the Company was able to increase its own advertising airtime space and its revenues. Specifically, the revenues from projects are such as Education Fund for Undergraduate Program, Election Promotion Program of the Election Commission of Thailand, The 60 Anniversary Celebrations of His Majesty s Accession to the Throne, the Southern Crisis Rehabilitation Project , Oishi Campaign and Search for Ja-ded character program. 2. The increase in radio revenues came mainly from the better management especially on FM 95, FM 97.5 and FM 100.5. Furthermore, there were activities such as Concert- The Seed Show, Lrookthung Mahanakorn On Tour. And also there was the apply of the Integrated Media Communication (IMC) concept to the radio program, for example, the Seed on TV program. The cost of production increased in proportion to the increase in the self-produced programs from 40% in Q1-2005 to 42% in Q1-2006. In addition, the cost of special Live Programs such as Political situation early this year and The preparation for Election day has taken into account of the higher cost of production. However, the increase in total expenses was controlled to be less than 10%. As a result, the Net Profit increased 25.4% or Baht 316 million. And the EPS is Baht 0.46 per share.