14 Aug 2020
VGI reports 50.6% revenue loss in Q1 2020/21 due to COVID-19
VGI PLC, the leader of Offline-to-Online (“O2O”) solutions across advertising, payment and logistic platforms, reported a net loss of THB 104mn in Q1 2020/21, with a 50.6% drop in total revenue compared to the same period last year to THB 445mn, due to the impact of the COVID-19 pandemic. Amid the widespread economic uncertainties resulting from the Government issued emergency decree and the ensuing lockdown measures and mobility restrictions for both domestic and international movements, the Company’s core businesses have been significantly affected.
“COVID-19 has dealt an unprecedented blow to our outdoor advertising business this quarter,” said Nelson Leung, CEO of VGI. “Reacting rapidly to the crisis, advertisers and brands have reduced their advertising spending. Our digital services segment has also been adversely affected particularly in offline payments where physical transaction is required. However, we have managed to make significant gains in online payments and logistics thanks to the massive surge in online transactions which resulted from the stay-at-home and lockdown orders,” Nelson Leung continued.
“The coronavirus pandemic has adversely affected the Thai economy since the beginning of 2020. The Bank of Thailand’s has revised the country’s GDP growth forecast for 2020 down from -5.3% to -8.1% which carries significant implications for all businesses. With the looming possibility of a new wave of COVID-19 and the resulting pressure on both the economy and politics in Thailand, our businesses particularly in advertising remain predictably volatile. Nevertheless, thanks to our diversified portfolio, strong balance sheet and most importantly the dedicated teams across our Group’s companies, we strongly believe VGI is well-positioned to benefit from the rebound once the crisis is over,” added Nelson Leung.