MACO turnover in 2017 recorded the highest annual revenue

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MACO announces performance it took highest revenue and profit continuous in 3 quarter.

Q4/2017 hits the target, got revenue THB 282 mn and net profit THB 73 mn. It’s cause of company has revenue THB 932 mn increase 26.9% from last year and net profit THB 73 mn increase 116.5% that highest since business operated and support acceleration OOH media platform expansion to cover nationwide in the past. The Company is also transitioning static media assets to a digital platform and receiving better than expected feedbacks from clients.

Suparanan Tanviruch, CEO (Chief Executive Officer) of Master Ad Public Company Limited (MACO) who leader of Nationwide Integrated OOH Media platform has reveal that MACO has added new growth engines through consolidation of outdoor media operators and transform static media operator in prime area to 21 LED digital billboards that achieve feedback from clients better than expected. Therefore Operating revenue in Q4/2017 has growing across industry. In the end of year MACO collaborate with Rabbit Group which is a part of VGI launched Online product to connect between OOH network and online services of Rabbit. MACO combine strength point in each channel together. OOH media could build awareness into push advertising that could not skip. Online media could build engagement with users to push client’s marketing campaign into purchase decision and close the selling deal. When both of advertising media fully combined MACO s media would perform and get into the niche target and could measure effectively.

In the past year MACO has growth with high profit continuous 3 quarter. Q4/2017 The company has revenue THB 282 mn growing 45.8% YOY and growing 7.4% from last quarter and has net profit THB 73 mn, continued growth in Q3/2017 earnings of profit THB 60 mn and Q2/2017 net profit THB 51 mn. A year of operating revenue in 2017 MACO has total revenue THB 932 mn increase 26.9% YOY and has net profit 221 mn increase 116.5%, This is new statistics of highest profit since business operated.

Operating performance grew with highest profit without precedent in history. On 9 February 2018, MACO’s Board of Directors resolved to approve the cash dividend payment from the operating results of 2H 2017 at THB 0.018 per share (a total of THB 62mn) to the shareholders of the Company whose name appeared on 15 March 2018 (Record Date). The dividend will be paid to shareholders on 18 May 2018. Hence, the total dividend payment from 2017 operations will be equal to THB 122mn (subject to the resolution of Annual General Meeting of Shareholders, which will be held on 25 April 2018).

Going forward MACO expect the total revenue to increase by 20-25% from the previous year. This will be driven by the expansion of LED billboards in CBD Area to 50 screens 50 provinces within the end of 2018. In early year 2018, MACO has completely expanse and ready to service 35 screens 32 provinces to increase OOH media market share from traditional media. In Bangkok, Business would develop along with extension of transit system and city plan changing

CEO also said In 2018 The company expect that would be year of great operating performance by supporting factors from consolidate full year financial performance of Co-mass and expansion digital billboard network to 50 screens from 35 screens included expansion static media. We expect that this year could push LED s media capacity up to THB 300 mn from THB 100 mn YOY. The occupancy s target is not less than 70%. MACO business plan has aim to expanse media network until it could be advertising network that could access and covers the entire population of 77 provinces. MACO could fully support advertising budget of daily consumer goods or Fast-Moving Consumer Goods (FMCG) or Mass products that has big market share. As a result customers of the company s advertising media are larger. It’s positive signal of OOH media business that clients originally spend advertising budgets specific to niche target. From now on it is believed that OOH media able to increase market share from traditional media. Cause of the current trend of consumer behavior has consume traditional media declining.

Analyst of Maybank Kim Eng Securities (Thailand) Public Company Limited (MBKET)

recommend "Buy" on Master Ad Public Company Limited (MACO) with a 12-month target price of Bt 2.66 per share.