Aug. 31--BEC World Plc (BEC), the operator of TV Channel 3, projects its second-half revenue will improve over the first six months as advertising spending increases as the economy improves.

A stronger economy will result in higher customer confidence, prompting advertisers to spend more, said vice-president Chatchai Thiamthong.

The pullout of ads by Unilever (Thai) Holding from Channel 7 earlier this year has also created opportunities, as rival firms increase ad spending in the mass-market channel to grab market share in the consumer-products market. Unilever withdrew from Channel 7 in protest against higher air-time rates.

"The performance in the second half will improve from the first half, but I can't predict the growth of ad spending," said Mr Chatchai.

In the first half, BEC reported a net profit of 1.14 billion baht on revenue of 4.1 billion, compared with profit of 1.4 billion on revenue of 4.3 billion during the same period last year. In the second quarter, its net profit dropped by 17 percent year-on-year to 556 million baht on revenue of 2.03 billion, a decline of 3 percent from the same period last year.

BEC increased its net profit 10 percent quarter-on-quarter. Advertising income jumped by 15 percent in the second quarter, as key advertisers substantially increased their spending with Channel 3.

Operating costs in the second quarter also increased.

Mr Chatchai acknowledged the concession dispute between BEC and MCOT remained a concern. He expressed surprise that MCOT had recently raised the issue of payment terms again despite the long-standing agreement between the two parties.

BEC shares closed yesterday on the SET unchanged at 18.70 baht, in trade worth 28.25 million baht.

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