17 Nov 2020
VGI astounds, delivering impressive gains in 2Q 2020/21 with THB 12 mn net profit, making strong progress on the road to recovery!
VGI PLC, the leader of Offline-to-Online (“O2O”) solutions across advertising, payment and logistic platforms, proves resilient, despite having been directly impacted by the COVID-19 pandemic. Thanks to its comprehensive ecosystem, the Company delivered a remarkable performance in 2Q 2020/21, recording THB 12mn net profit and total revenue of THB 717mn, with its Out-of-Home (OOH) Advertising and Digital Services segments posting THB 480mn and THB 237mn in revenue, respectively.
Mr. Nelson Leung, CEO of VGI, said, “2020 has been a year filled with unprecedented challenges and disruptions. Like many other businesses and ventures around the world, VGI has been confronted with the fallout of the COVID-19 pandemic and the political tension in Thailand, as several companies cut back on their advertising spending, thereby dealing a significant blow to our advertising business. Moreover, we have recorded share of loss from our investments in joint ventures and associates due to the weak performance of both domestic and international businesses under Master Ad Public Company Limited that were heavily affected by the strict lockdown and stay-at-home measures and mobility restrictions for both domestic and international movements.”
“Nevertheless, we have managed to rebound swiftly from the previous quarter and maintain a steady recovery, thanks mainly to the gradual return to normalcy and upsurge in daily mobility as people return to their offices, which have led to a rise in demand for advertising as well as consumer spending. The immediate actions we took in response to the volatile economic situation – including reducing maintenance and employee costs and negotiating discounts with landlords and service providers – have also contributed to our ability to bounce back quickly and achieve positive earnings and net profit in 2Q 2020/21. This is a clear illustration of our capability to draw strengths and leverage synergy from across our ecosystem to surpass our lowest financial performance and drive our Company through this highly unpredictable crisis,” Mr. Leung noted.
KEY BUSINESS AND STRATEGIC UPDATES
This quarter, in Advertising, VGI teamed up with Minere (Thailand) to launch an O2O campaign integrating offline OOH media with Augmented Reality (AR) technology, which was highly successful in generating both engagement and conversion. In Payment, Rabbit LinePay (“RLP”) has entered into a strategic partnership with eLong International Travel (Hong Kong) Limited or ‘TravelGo.com’, the leading Chinese online travel booking platform, to provide exclusive online transportation and accommodation reservation services through RLP for LINE users in Thailand. Meanwhile, Rabbit Card won the Superbrands Award from Superbrands Thailand in recognition of its pioneering role in driving the country towards a cashless society with its wide variety of products and services covering all forms of lifestyle consumption.
As for our Logistics segment, on 25 August 2020, Kerry Express submitted an initial public offering (IPO) filing to the Securities and Exchange Commission to offer 300mn ordinary shares at a par value of THB 0.50 per share, making it the first parcel delivery firm to launch an IPO on the Stock Exchange of Thailand (SET) index.
At the heart of our Company lies not only the strive to achieve strong performance, but also our commitment to driving sustainable social impact for all stakeholders. In this regard, VGI has joined hands with Pomelo, Southeast Asia’s leading omnichannel fashion platform, to initiate the “Trash to Treasure” project to promote environmental sustainability, namely by tackling the waste issue through “upcycling”, whereby vinyl from our used billboards was repurposed for Pomelo’s packaging. In turn, the collaboration helped slash our vinyl waste by 3,500 square metres or 3.5 tonnes, while Pomelo was able to cut back on more than 200,000 pieces of single-use packaging.
As for the Company’s future directions, Mr. Leung further added, “Moving ahead in the face of ongoing uncertainties, we will continue to focus on delivering strong performance by stabilising our liquidity and maintaining a strong balance sheet in order to be able to respond effectively to sudden changes. With our robust O2O solutions and diversified portfolio, we strongly believe VGI is well-positioned to deliver sustainable growth and profit for our shareholders and all stakeholders in the short and long terms.”