VGI Group Announces 1Q 18/19 Results. Continues to Grow! Strengthening the digital and online business and reiterates the Leadership in O2O Solutions

Stocks and Financial Services Press Releases Friday August 10, 2018 10:22
Bangkok--10 Aug--VGI Global Media

VGI Global Media (Public) Co., Ltd. or VGI, Thailand's number one Offline-to-Online ("O2O") Solutions provider, announces the operating results of the first quarter of year 18/19 (April - June 18) totaled revenue 1,077 million Baht, a 26.5 % increase comparing to the same period of the last year. The major driven force came from the performance of the outstanding out of home media business (OOH and from the operating results in all business segments that have grown steadily and impacted to the Company's strong earnings.

Mr. Nelson Leung, Chief Executive Officer of VGI Global Media (Public) Co., Ltd. said that this year, the company is celebrating its 20th anniversary unveiling a new vision "Pioneering Solutions for Tomorrow", with the expansion of the Out-of-Home ("OOH") media business to embrace an integrated offline and online platform offering new advertising services or O2O Solutions. At present, VGI is the leader of O2O Solutions, the first and only in Thailand, that can meet all customers and consumers demand by using the existing database to enhance all steps of customer service. Currently, VGI's ecosystem comprises of 3 main platforms 1) Advertising platform including Transit, Office, Outdoor and Airport, 2) Payment and digital services platform under our subsidiary – Rabbit Group and 3) Logistics platform or last-mile delivery services under Kerry Express (Thailand) Limited and Demo Power (Thailand) Company Limited. VGI's considerable and growing data pool will serve as the key to unlocking synergies between the aforementioned entities.

Having these 3 platforms, the Company's focus has shifted from relying solely on adspend to capturing greater market share of marketing budget as well as riding on the growth of the e-Commerce. While previously VGI was characteristically sensitive to the cyclical patterns of Thailand's advertising environment, we expect our new foundation for growth to make us more competitive and resilient.

The OOH media segment recorded broad revenue growth across all product groups. 1Q 2018/19's revenue in OOH media segment rose considerably by 32.1% YoY, representing a contribution of 92.5% to total revenue or THB 997mn. The growth in OOH media revenue resulted from synergies from the O2O Solutions, a higher utilisation rate, digital billboards products as well as the full quarter consolidation of Co-Mass Company Limited ("Co-Mass") in the Outdoor media segment.

Within the OOH media, Transit media revenue is 620 million Baht, an increase of 19.5% compared to the same period last year. Growth in revenue comes from the higher utilisation rate especially in digital media and commercial rental space at the stations. In addition, this media segment also benefited from the synergy of the O2O Solutions campaigns on the 10 BTS stations, which generated over 80 million Baht in the first quarter of 2018/19.

Meanwhile, Office Building and Other media segment revenue grew solidly, increasing by 40.0% YoY to THB 93mn. The revenue growth in the first quarter was mainly from a higher utilisation rate as well as price increases. In addition, the Company also recognised revenue from new media under the Other Media segment.

The Outdoor media segment, saw extraordinary growth of 67.4% YoY, or THB 114mn reaching THB 284mn in 1Q 2018/19. The increase was mainly due to ongoing revenue recognition of 35 digital billboards, which was rolled out in July 2017. In addition, this segment also benefitted from the full year consolidation of Co-Mass, which was acquired in June 2017.

For Digital Services business contributed 7.5 % of total revenue or THB 80mn, decreasing by 17.2% YoY or THB 17mn, mainly due to a decrease in project management fees. However, looking at the overall picture, digital services are a business that develops the advertising to be measurable and can reach even more target audiences. It is, therefore, a key variable to drive revenue for other media of the Company.

The CEO also said that VGI got off a good start to the new fiscal year of 2018/19, steadily continuing the growth trend established in the last few quarters. During first quarter, VGI reported an increase in revenue from THB 852mn to THB 1,077mn, or an increase of 26.5% YoY. For 2018/19 as a whole, the Company maintains its revenue target in the range of THB 4,400mn to THB 4,600mn and expects the net profit margin of 20 – 25%.

On July 19, 2018, VGI and Bangkok Broadcasting & TV Co., Ltd. (BBTV) jointly established a joint venture company, BV Media Ads Co., Ltd., with a 50% stake. The business is to manage advertising and public relations in the supply of actors or famous people to do marketing activities. The company expects marketing activities with Channel 7 within BVTV will further diversify O2O Solutions products and services in the future.

VGI's warrant number 1 ("VGI-W1") has expired on August 1, 2018. The Company received cash from the exercise of VGI-W1 amounting to 8,618 million Baht or 72% of the total. The proceeds from this VGI-W1 will be utilised for the acquisition of Kerry Express, while the remaining balance is expected to be used for the subscription of shares in the announced rights offering of MACO and expansion of the digital and online-related businesses, the CEO said.

About VGI Global Media Plc (Stock Code VGI.BKK)

Established in 1981, VGI has been committed to be Thailand's most customer-oriented media company. This rich heritage defines who we are and what we do today. VGI was the No.1 out-of-home media platform having its media in Transit, Office, Outdoor, Aviation and Activation with over

THB 6,800mn inventory million on hand. Now, VGI is the unique market leader in Thailand
providing fully integrated Offline to Online(O2O) solutions for the clients. Leveraging on its

exclusive access to Rabbit data, which serves as a bridging point throughout the customer journey, enabling VGI to offer a 360-degree advertising solution for our clients, helping them reach their target audience at every stage of the purchasing process and engage more effectively with their customers; thereby providing a better overall customer experience. VGI is a member of BTS Group Holdings Plc., Thailand's leading provider of mass transit solution


Latest Press Release

Fitch Affirms Standard Chartered Bank (Thai) at #A-#; Outlook Stable

Fitch Ratings has affirmed Standard Chartered Bank (Thai) Public Company Limited's (SCBT) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'A-' with a Stable Outlook. At the same time, the agency has affirmed SCBT's National...

Photo Release: KBank recognized as having the highest corporate brand value in the banking business category 2nd consecutive year

At Sukree Kaewcharoen Auditorium, the Stock Exchange of Thailand (SET), Ms. Kattiya Indaravijaya, KBank President, recently represented KBank to receive the "Thailand's Top Corporate Brand Values 2018" award in the banking business category from...

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงานในเกาหลี เปิดโอกาสให้แรงงาน 1.5 ล้านคนได้ใช้เงินดิจิทัล

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงาน Korea Association of Care Workers (KACW) เพื่อนำสกุลเงินดิจิทัล MicroBitcoin มาใช้ สัญญานี้ลงนามร่วมกันสามฝ่าย ได้แก่ MicroBitcoin Open Source Community, KACW และ Bluequotient...

MicroBitcoin Open Source Community Signs an Exclusive Contract with the Korea Association of Care Workers (KACW) to Expand its Usability to One and a Half Million Users

The MicroBitcoin Open Source Community has signed a contract with Korea Association of Care Workers (KACW) to adapt the MicroBitcoin blockchain network protocol. The trilateral contract was made between the MicroBitcoin Open Source Community, the Korea...

WICE establishes a joint-venture, EUROASIA TOTAL LOGISTICS, with its holding 40% of shares to provide cross-border transport services between China, Hong Kong

WICE establishes a joint-venture, "EUROASIA TOTAL LOGISTICS", with its holding 40% of shares to provide cross-border transport services between China, Hong Kong, and South East Asia with the expectation to achieve the first year's revenue at 200 million...

Related Topics