VGI Records 5.6% Net Income Growth to THB 225.8 mn for Q3/15-16 Despite the decline in Media Industrys AdSpend, Expects Market Recovery in 2016, Declares Dividends at THB 0.05/Share

Stocks and Financial Services Press Releases Wednesday January 27, 2016 11:59
Bangkok--27 Jan--MasterMind Communications

VGI, Thailand's leading provider of Out-of-Home media solutions, revealed its operating results for Q3/15-16 (Oct-Dec'15), highlighting a 5.6% QoQ growth in net income to THB 225.8 million, achieved through better cost control and broader coverage throughout premium office building, condominium and airport segments, despite the contraction of 0.1% YoY in media industry. Its board approved an interim dividend at THB 0.05/share. Its management expects an economic recovery will boost the advertising industry's spending this year to rebound back to positive territory.

Mrs Suparanan Tanviruch, Chief Financial Officer, VGI Global Media Public Company Limited (SET: VGI), announced VGI's performance figures for the third quarter (Oct-Dec'15) as stated in the company's 2015/16 financial statements, saying the company maintains a healthy net profit growth despite a slight decline of top line by 3% QoQ. VGI reported an operating net profit (excluding extraordinary items) of THB 225.8 mn, or 5.6% increase QoQ reflecting effective management amid the stagnant economy.

The key factors leading to VGI's greater profitability included not only efficient cost control but also the firm's relentless expansion of its advertising media network, especially in the office building segment, which has a exposure to high purchasing power of the target audience and proved to be extremely popular media among customers. During the third quarter, VGI expanded the office building portfolio from 103 to 123 buildings.

The company also began to tap into the new advertising media segment, by forming partnership with Artista Media, the owner of the digital advertising screens at condominiums managed by leading property brands including LPN, Grand Unity Development and AP, becoming the partner's exclusive agent for advertising media management. Artista Media currently manages 549 LCD screens at 219 condominium buildings, and the number of buildings will jump to 300 in 2016 and to 400 by 2017. The deal has enabled VGI to retain the greatest number of advertising media for office towers and condominiums.

VGI also invested in Aero Media (formerly LED Advance) who manages advertising throughout 13 prime airports in Thailand including Suvarnabhumi with busy daily passenger traffic. Thanks to positive responses to the additional channels of communication to both Thai and international tourists, it has raised the number of LED displays from a little more than 32 to 342.

Given the total revenue and net income figures of THB 1,786.19 million and THB 730.9 million, respectively, for the first nine months (Apr-Dec'15) of the period represented by VGI's 2015/16 financial statements, VGI's board of directors have resolved on 26 December to declare interim dividend payments at THB 0.05 per share, setting 11 February 2016 as the book-closing date, 8 February 2016 as the XD date and 19 February 2016 as the payment date.

Mr Marut Arthakaivalvatee, VGI's member of the Executive Committee member and Chief Executive Officer, noted that the advertising media industry in early 2016 will not experience meaningful changes from late 2015, but expressed his team's belief that the current government-initiated stimulus measures will help move the country's economy forward more robustly this year and, hence, boost advertising spending among business firms to increase their sales. The target audience are high-net-worth individuals who are not significantly affected by the current economic situation and the number of tourists visiting Thai airports has risen from the previous year, the office tower and airport segments will likely flourish.

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