25 May 2018
2017/18: A transformational year and the most lucrative year yet for VGI Group
The past fiscal year was one of the most lucrative years for VGI. We achieved a record revenue of THB 3,936 million – a significant growth of 29%, and the highest in the company’s history. Our EBITDA expanded by 25% to THB 1,691 million, while our adjusted net profit rose considerably by 28% to THB 964 million.
All of our business segments have contributed to this success. The diversification of our product mix; the extended digital portfolio of Master Ad Plc (MACO) – our main outdoor media service provider – and the synergies between VGI and Rabbit Group – our lifestyle solutions company – are among the key factors.
“Our strategy is clear, VGI branched out beyond being an Out-of-Home (“OOH”) media provider to the online world, where we have successfully integrated our world-class offline and online platforms to create an Offline-to-Online (“O2O”) advertising service, thereby solidifying our role as the market leader in the country. In fact, this strategy has proven to be a major factor driving our strong performance, helping to generate additional income of THB 336 million. This year, we also commenced our collaboration with AIS, the leading telecommunications operator; hence we can expect to see more positive results in the year to come,” said Nelson Leung, Deputy CEO of VGI.
On 16 May 2018, VGI’s Board of Directors approved an intention to sell VGI Malaysia to Master Ad Plc, VGI’s subsidiary. VGI Malaysia is our overseas platform with a diversified OOH business portfolio covering transit media in Malaysia and Indonesia, airports, cinemas, buses as well as modern trade. “We want to place a stronger focus on building the most robust Offline-to-Online ecosystem in Thailand and have seized this great opportunity to sell our international business to MACO, who will be our arm’s-length for regional expansion,” said Leung.
The Board has also approved an intention to acquire Kerry Express Co., Ltd (“Kerry”), Thailand’s
leading parcel delivery company. Kerry Express expanded its business alongside the e-commerce and
social media booms in recent years. Today, Kerry Express delivers more than 750,000 parcels per
day via its 600 distribution centres, 12,000 vehicles and 2,000 service points. Kerry Express is also an
active partner of Rabbit LinePay, it pioneered LinePay-on-delivery (“LOD”) service since July 2017.
Now Kerry Express is one of Rabbit LinePay’s largest merchants. In the 2017 financial year, it made a
total revenue of over THB 6,578 million obtaining a net profit of THB 733 million, an increase by 105%
and 138% from 2016, respectively
“With the acceleration of Internet access and the increasing popularity of smartphones, the advertising landscape is rapidly changing. Digital and online marketing is now the “go-to” choice for advertisers. Therefore, advertising is no longer just about creating awareness, but engaging consumers with brands. The logistics capabilities enhanced through our partnership with Kerry Express will enable us to effectively deliver our services to respond to this fast-growing trend. We are confident this new business approach will contribute to our future success, as reflected in our new vision “Pioneering Solutions for Tomorrow” to be unveiled on May 23,” said Leung.