Today: August 20, 2017, 3:42 pm
  
Business

VGI Posts Outstanding Results of 37% Revenue Growth

VGI Posts Outstanding Results of 37% Revenue Growth
PR-Inside.com: 2017-08-04 18:16:51
Confident of Hitting Baht 4 Billion Full-year Revenue Target

BANGKOK, Aug 4, 2017 - (ACN Newswire) - SET-listed VGI Global Media PCL (VGI) has reported Baht 852 million revenue in the first quarter of its fiscal year 2017/18, an increase of 37% from the same period last year while net profit from operation was Baht 192 million. The company is confirmed full-year revenue target of Baht 4 billion.

VGI's Deputy Chief Executive Officer Mr. Lap Shun Nelson Leung said results from the first fiscal quarter (April 1-June 30) which represent a 37% increase from the same period last year showing a solid performance driven by an improvement in all of the group's business sectors.


The Transit sector (BTS) which is the core business, generating revenue of Baht 519 million, up 23% from the same period last year. Thanks to collaborative efforts with the Rabbit Group to offer in innovative media and deliver higher sale growth. This business sector also has expanded internationally, the Company has also started to roll out advertising campaign on 2 SBK sky-train stations in Malaysia out of the total 31 stations and has completed installation of display advertisements on 7 trains.

Meanwhile, VGI has also been highly successful in expanding advertising space in office buildings. Out of the full-year target of covering 170 office buildings this year, the company has already covered 166 buildings in the first quarter, which signifies strong revenue recognition in the remaining quarters. Revenue in the first quarter has stabilized at Baht 66 million.

For outdoor segment, VGI recorded Baht 170 million of revenue through MACO. As MACO will be spearhead in Out-of-Home media, its strategy is to secure the leadership and market share in Out-of-Home media in Thailand. In a meantime, MACO is monetizing its existing assets by converting the static media into digital screens. Currently, it has a total media capacity of Baht 1.4 billion. Also, in this quarter, MACO has improved its cost efficiency and recorded profit growth of 26% YoY.

Revenue from digital services business by Rabbit Group increased 19% to Baht 97 million as the number of Rabbit Cards has reached 7.8 million with 126 partner brands covering more than 4,000 outlets with 2.2 million people using Rabbit LinePay.

Our associated companies have also expanded notably. For example, in the aviation sector where Aero Media operates a fully-integrated advertising service covering 13 airports, 70 aircrafts and 57 air bridges as well as all advertising in the AOT website. Meanwhile, Demo Power (Thailand), which provides marketing services by giving product samples and sales demonstration, has expanded its services to cover the entire BTS skytrain network.

The VGI Deputy CEO noted that the Baht 192 net profit from operation in this quarter represents a 3% increase from the same period last year despite a higher expenses due to M&A effect as well as interest expenses from VGI's recent investments.

It was noted that the company's financial statement shows a Baht 175 million net profit, compared to Baht 313 million net profit last year which included an extraordinary item related to fair value measurement in MACO of Baht 207 million.

"This past year has been a year of investment for VGI, signifying that we now have a media base covering all the key advertising platforms. The direction from now on is to transform our business model from on traditional Out-of-Home media into a fully integrated cross-media platform, delivering targeted advertisements and provide value to brands," Mr. Lap Shun Nelson Leung said.

VGI will serve as the centric to integrate all of our business units in the one-stop shop solution where each of the business unit is positioned to capture the leading position in its respective field. For instance, MACO will be a spearhead in Out-of-Home media expanding its network nationwide as well as digitizing its assets. Meanwhile, Aero Media will be responsible to capture the leading position in aviation media.

Mr. Lap Shun Nelson Leung added that since the advertising industry is highly correlated to macro economy. It is indicated that the GDO will expand solidly this year thanks to improvement of exports, tourism growth as well as government spending on mega projects. As such, VGI is confident it will be able to achieve the full-year revenue target of Baht 4 billion.

About VGI Global Media PCL

VGI Global Media PCL (SET:VGI; VGGMF:OTC) is Thailand's major provider of out-of-home media solutions, having more than 10,000 items of large still-image screens in the BTS skytrain network and large retail stores nationwide. It also has over 11,000 sq.m. of advertising space in the product display zones of large modern trade stores, as well as about 5,000 items of digital screens and media in the BTS platform and train areas, the Tesco Lotus, Big C, and Watson stores, and large office towers throughout Bangkok, and mega LED and outdoor led screens under its management. In addition, the company runs retail shops in 23 BTS stations and radio networks covering nearly 2,000 modern trade stores in Thailand. For more information, please see www.vgi.co.th.

Contact:

Investor Relations:

VGI Global Media PCL

T: +66 2273 8639; 66 2273 8623

E: ir@vgi.co.th

U: www.vgi.co.th

Public Relations:

MT Multimedia Co Ltd

Orn-arong ("Fah") Pattaravejkul

T: +66 2612 2081 #129

M: +66 8 6884 4458

E: orn_tabo@hotmail.com

Source: VGI Global Media PCL

Topic: Earnings

Sectors: Daily Finance, Broadcast

www.acnnewswire.com

From the Asia Corporate News Network

Copyright © 2017 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Press Information


Published by
ACN Newswire
+65 6304 8926
e-mail
www.acnnewswire.com



# 877 Words
Related Articles
More From The Author
Nikko Asset Management and ARK Invest Partner [..]
TOKYO, Aug 4, 2017 - (JCN Newswire) - Nikko Asset Management ("Nikko AM") today announces that it is enhancing its [..]
Trillium Announces Acquisition of CanBusHack, Inc.
LAS VEGAS, NV, July 30, 2017 - (ACN Newswire) - Trillium Inc, a leading automotive cybersecurity solutions provider, today announced [..]
Wintermar Offshore (WINS:JK) Reports 1H2017 Financial Results
JAKARTA, July 31, 2017 - (ACN Newswire) - Wintermar Offshore Marine (IDX:WINS) has reported 1H2017 financial results. 2Q2017 saw [..]
CFCG To Acquire Renowned Korean Online Education [..]
Maps New Layout of Global Online Education Business HONG KONG, July 31, 2017 - (ACN Newswire) - China First Capital [..]
Trillium Launches SecureSKYE, a Paradigm Shift for [..]
LAS VEGAS, NV, July 26, 2017 - (ACN Newswire) - Trillium Inc, a leading provider of automotive IoT cybersecurity solutions, [..]
 
More From Business
Ossur Hf : Share options granted
  Announcement from Össur hf. No. 60/2017 Reykjavík, 18 August 2017 Today, Össur hf. has granted 50,000 share options to [..]
Promethean Opens New Global Headquarters in Seattle
Seattle, Wash., Aug. 18, 2017 (GLOBE NEWSWIRE) -- PrometheanTM, a global education technology company, announced today the [..]
Guess & Co. Corporation Pursuing Acquisitions of [..]
Guess & Co. Corporation Pursuing Acquisitions of Middle Market Companies To Build Its Operations Raleigh, NC, Aug. 18, 2017 [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.