VGI Public Company Limited or VGI, the leader of Offline-to-Online (“O2O”) Solutions with 3 platforms of Advertising, Payment and Logistics business announced the performance of 1Q 2019/20 (April – June), having the total revenue of THB 1,392mn, an increase of 24.5% YoY, and net profit of THB 304mn, an increase of 16.3% YoY. However, excluding the one-time impact from long-term employee benefits, net profit stood at THB 325mn, increasing by 24.5% YoY.
Mr. Nelson Leung, CEO of VGI Public Company Limited cited that since last year, we have been transforming ourselves from traditional offline Out-of-Home (“OOH”) media platform to be a fully integrated O2O Solutions provider. To reflect the repositioning of the business, where the multiple platforms combine into a unified brand, the Company formally changed its name and logo from VGI Global Media Public Company Limited to VGI Public Company Limited with effect from 26 July 2019.
ADVERTISING - focusing on extracting synergies within our ecosystem through the partnership with PlanB by combining more than 80% of both companies’ digital OOH screens throughout Bangkok, known as the “Bangkok Takeover” campaign. The Bangkok Takeover package paint only one exclusive advertisement for a duration of 1 hour per month during prime time. This covers transit media channels which encompasses more than 9.0mn eyeballs, allowing advertisers to communicate with creativity and gain both attention and impact. The package is now fully booked until the end of this year.
Moreover, VGI successfully rolled out 40 of its 45 metre-wide digital screens, named ‘VGI Immerse’ on 4 BTS stations: Chong Nonsi, Asoke, Phrom Phong and Sala Daeng. VGI Immerse an innovative media to deliver creativity content and powerful impact of the brands with the image and sound for audience.
VGI together with iClick Interactive Asia Group Limited (“iClick”) has successfully formed a joint venture named V-Click Technology Limited (“V-Click”). Leveraging the digital strengths and extensive local network of both companies, V-Click will help provide its clients to deepen their engagement with the lucrative Chinese outbound traveler market which has total spending power more than THB 580bn through a comprehensive suite of technology based on iClick’s 780 million consumer profiles.
In 1Q 2019/20, OOH segment media revenue decreased 6.2% YoY to THB 946mn, mainly from the renovation impact of upgrading of our digital OOH advertising media on transit media and MACO’s Street Furniture. However, we expect that OOH media segment will benefit from the synergies with Plan B media Company Limited (“PlanB”) including ‘Bangkok Takeover’ launched July 2019 as well as the installation of digital screens of Street Furniture has already been completed and started commercialisation in June 2019 which will generate more revenue going forward.
PAYMENT - recorded a revenue of THB 445mn, an increase of 308.7% YoY, mainly due to the full-consolidation of Trans.Ad Group by MACO. The segment also benefit from the growth of Rabbit Group, which was mainly from an increase in revenue from project management fees and higher lead generation revenue. Currently, the number of Rabbit card is 11.5mn cards, an increase of 3.9% from March 2019 as well as through our synergies partners and organic expansion, Rabbit LinePay serves more than 6.0mn users, an increase of 9.5% in 1Q 2019/20.
LOGISTICS - Kerry continued to launch Kerry parcel shops on 3 BTS stations – Phrom Phong, Thong Lo and Sala Daeng. We expect to roll-out at an additional shop on Siam Station by 2Q 2019/20.
Mr. Nelson Leung also added that “VGI delivered another strong quarter as well as solid payment user growth and synergies across our ecosystem. Therefore, the Company enabled to strengthen our core business while expanding into new business that create unique product offering. Moreover, we foresee more revenue generating from Online Marketing Solutions with new product development of VGI Digital Lab, which focuses on online and digital marketing in Thailand and China. These strategic investments have expanded our total addressable market and positioned us well for long-term growth going forward.”