14 Feb 2020
VGI breaks record for the two quarter in a row, amassing a total revenue and net profit of THB 1,867mn and THB 401mn in Q3 2019/20!
VGI PLC, the market leader in Offline-to-Online (“O2O”) Solutions across Advertising, Payment and Logistics platforms, announces record-breaking third-quarter performance for 2019/20, with soaring revenue and net profit of THB 1,867mn and THB 401mn, a surge of 25% and 30% YoY respectively. This is the second quarter in a row the Group has achieved such exceptional results, thanks primarily to strong performance of its Out-of-Home (OOH) media segment, coupled with revenue recognition of VGI Digital Lab, its latest online media unit that has been very well received by the market.
“This quarter, our OOH media showed an impressive growth on all fronts compared to the same period last year, growing by 24% with net revenue of THB 1,212mn. This is largely due to the consolidation of our international advertising, particularly in Outdoor media, and the strong organic growth of our Transit media, which grew by 11% reaching THB 654mn, alongside the strong performances of our Office and other media segments, which grew by 12% reaching THB 108mn respectively. Such strong growth was also spawned by robust demand for both static and digital media during the high season of October – December, leading to higher utilization rate,” said Mr. Nelson Leung, CEO of VGI.
“Our Outdoor media grew substantially from the previous year by 52%, bringing in THB 450mn. This is due to growth in our Street Furniture media and revenue from the consolidation of our international advertising through Puncak Berlian Sdn. Bhd. (PBSB) by Master Ad Public Company Limited (MACO), a subsidiary of VGI that will strategically focus on international expansion moving forward.”
“In the Digital segment, we also made an additional THB 654mn, an increase of 28%, which was driven by revenue recognition of VGI Digital Lab, our comprehensive online media agency focusing on creating online digital campaigns based on our Data Management Platform (DMP). Due to its popularity, this service has received growing demands from both local and global brands.”
“In terms of our strategic direction and management outlook, in Advertising, following the Extraordinary General Meeting of MACO on 14 January 2020, shareholders approved the acquisition of Hello Bangkok LED Company Limited (Hello LED) and the issuance of newly issued shares through a private placement to Plan B Media Public Company Limited (PlanB) as well as approved an agreement to transfer advertising media management to PlanB, of which all transactions were completed on 30 January 2020.”
“Meanwhile, our Payment service has seen consistent growth in the number of users since April 2019, with 12.6 million Rabbit Cards issued and Rabbit LinePay users reaching over 7 million, a 22.2% increase.”
“In Logistics, VGI and Kerry Express (Thailand) Limited (Kerry) continue to extract synergies by developing new advertising solutions, for example, a new product called “Parcel Sticker” – which attached clients’ advertising on Kerry’s parcel boxes – was launched in December 2019. To date, more than 500,000 pieces of these parcels have been delivered. In addition, wrap advertising has been placed on 400 Kerry Express Trucks, which run around Bangkok and vicinities,” added Mr. Nelson Leung.
On 12 February 2020, VGI Board of Directors approved the dividend payment of THB 0.045 per share to shareholders as of 26 February 2020, which amounts to a total pay-out of THB 387.5mn. The payment is based on the company’s operating results in the first half of the fiscal year and will be made on 6 March 2020.