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VGI Group presented the Q2 is surging in every platform. Rabbit Line Pay has got an excellent feedback! The number of Rabbit Line Pay user increased 55.2% or 4.5 million users!

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VGI Global Media Public Company Limited or VGI, the first and only leader of Offline-to-Online (“O2O”) Solutions announced the performance of Q2 in 18/19 (July – September2018) having the total revenue of THB1,208 mn, an increase of 23.5% YoY with the supportof the performance with has grown up according to the strategy set up for OOH and thetendency of the performance result from development of every business group thusencouraging the company to generate increasing continually revenue.

Mr. Nelson Leung, CEO of VGI Global Media Public Company Limited cited that, during thepast decade, it was obviously seen that the global changes from the influence of internetinvolving the communicating behavior of people in this era. This is why the advertising sectorhas to adjust itself to access the consumers in timely manner.

VGI anticipated such changes, therefore starting to shift the strategy from doing businessfrom the large OOH alone to be the leader of the market with the unique and outstanding toaccess the in-depth data of the consumers through Advertising Media platform, paymentservice platform, and logistics platform by integrating these data to boost the sale serving thedemand of the customers at 360 degree, aiming to develop products used as the instrumentsfor pushing the brand to communicate with the clients at every place and every time. Allthese restructuring will enable VGI to have the infrastructure for the growth and morecompatible in the market. For this quarter, the net profit of the company increased to THB260 mn, growth 28.8% YoY, which each business platform generated significant developmentstarting from:

Advertising: The Company strengthened the business by expanding the network to overseasand increased the digital ability through the cooperation with the major partners under themanagement of Master Ad Public Company Limited or MACO whereas this quarter, OOHrevenue was at THB 909 mn increasing 2.0% YoY. The surge of the revenue was monitoredby the outstanding performance from Outdoor and Office & Other media businesses.

Transit media: the revenue was THB 535 mn , 7.2% dropped YoY. The main reason was theend of O2O Solutions campaign contract on BTS sky train with the revenue at THB 57 mn,dropped from THB 87 mn YoY. As most of the contract of O2O Campaign Solutions was endedin June 2018 which is the accounting year of the customers and Advertising Media. However,
the company expected that such drop will be only a short term impact and believed that thecustomers will return to use the media as usual during the rest quarter of this year.

Office & Other media: The revenue was THB 109mn increasing 31.7% YoY. The main factorwas the increasing rate of media usage including the prices increment of Advertising mediain the building. In addition, the company was also granted 3 contracts to manage media inthe building with the total number of 177 buildings altogether and 1,374 digital screens.

While the Outdoor media recorded the revenue at THB266 mn, increasing 14.4% YoY, themain reason was from the continuing revenue recognition from 35 screens of Digitalbillboards.

Payment (Digital Services)

The development of users is increasing with leaps and bounds starting from Rabbit LinePayduring the past 6 months, the users increased by 55.2% or 4.5 million users whereas thesupporting significant factor from the modifying the new application on LINE application tobe more convenient and easier to use. On 30 October 2018, RLP and BTS announced the softlaunch of “Bind, Tap & Ride” service across 20 BTS stations allowing more than 800,000 BTSpassengers to enjoy and even more convenient and seamless experience daily while theRabbit Card users can bind such card with RLP to become single e-wallet.

This service will be regarded as a significant step of the group of companies to drive thesociety to the cashless society. This also includes the smooth and seamless travelingexperiences for the BTS passengers. For Rabbit card, the number of offline payment throughRabbit Card circulation reached 9.8 mn cards nearly achieving its full-year target of 10.5 mncards. RABBIT AEON Rabbit, a micro-loan business achieved a total outstanding loan balanceof THB 1,529 mn during the past 6 months while the growth of digital service business in Q218/19 was THB 299 mn increasing by 243.6% YoY. The main reason is the financial statementconsolidation of Trans Ad group by MACO including the increasing of the project managementand selling Rabbit Card of Rabbit Group.

Logistics – Synergy between our advertising and logistics business delivers new marketing solutions.

In the past quarter, VGI partnered with Kerry Express to soft lunch smart sampling throughKerry Express network. Within 1 month of product launch, the company has successfullydelivered 70,000 pieces of top FMCG Brand products with a significantly higher conversionrate of 3-5% compared to the industry norm of 0.5%.

From now onwards, the Advertising Media market tends to achieve better growth resultingfrom the up-coming election in the beginning of 2019, expecting positive result to the overalleconomics benefit for Advertising budget. Furthermore, the growth of e-commerce expectedto reach 30% annually due to the lifestyle of the consumers who appreciate using more smartphones and tablets as well as the consolidation of financial statement of Tans Ad encouragingthe company to increase the targeted revenue in 2018/19 to THB 5,000 mn from previous target at THB 4,400 – 4,600 mn and projected that the net profit rate of the company willreach 20 – 25%, cited CEO.