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VGI Breaks Record for All-Time High Revenue and Profit

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VGI PLC, the market leader in Offline-to-Online (“O2O”) Marketing Solutions across Advertising, Payment and Logistics platforms, sets yet another remarkable record, announcing new all-time high quarterly performance. The Company’s second quarter 2019/20 earnings report revealed revenue of THB 1,668mn and net profit of THB 355mn, which represent a mammoth increase of 36.5% YoY and 36.6% YoY, respectively. The surge is attributed to the consolidation of international advertising operated through Puncak Berlian Sdn. Bhd. and the full-quarter consolidation of Trans.Ad Group by Master Ad Public Company Limited (“MACO”). Moreover, the Company’s new digital segment, VGI Digital Lab, offering online and digital marketing solutions, is well received by the market and has started to generate satisfactory revenue.

“Despite the lower-than-expected growth in our domestic advertising segment, particularly in transit and office media, which was affected by the low season and renovation work, in the second quarter 2019/20, our Out-of-Home (“OOH”) media has generated THB 1,048mn, up by 13.8% from the same period last year, thanks to the consolidation of our overseas advertising business,” said Nelson Leung, CEO of VGI.

The Digital Services segment produced THB 620mn in revenue in the quarter, a tremendous jump by 105.9% YoY. This is a result of revenue generated by VGI Digital Lab and growth of Rabbit Group, which was mainly derived from an increase in revenue from project management fees and higher lead generation revenue. In addition, the full-consolidation of Trans.Ad Group’s financial performance through MACO has contributed to the growth of this segment.

Moving ahead, VGI will continue to focus its strategy in the development of the following core businesses:

ADVERTISING: the Board of Directors of MACO, a subsidiary of VGI, has approved the acquisition of 50.0% in Hello Bangkok LED Company Limited and the issuance of 1,080mn shares through Private Placement to Plan B Media Public Company Limited (“PlanB”) at the price of THB 1.44 per share. Once the acquisition is completed, MACO will fully focus on international expansion, while PlanB will take charge of domestic advertising segment. However, the transaction is subject to approval at the Extraordinary General Meeting on 17 December 2019.

PAYMENT: To date, there are over 12.2mn Rabbit cards and over 6.5mn Rabbit LinePay users, an increase of 8.5% and 13.6% from April 2019, respectively. This result was boosted by the expansion of physical connecting points through various transit channels that helps facilitate a seamless payment experience for consumers.

LOGISTICS: Through continual expansion, Kerry has doubled its service points to 10,000 locations and is now able to handling the highest parcel at 2 million per peak days. To meet the demands of the e-commerce sector, Kerry has also launched a brand new “BTS Express Service” on 4 BTS stations, which provides super fast delivery within 3 hours.

“We are moving closer to our goals. The strong performance during the first half of 2019/20 is a clear indication of our relentless commitment to maximize revenue and profit as well as create lasting shareholder value for our shareholders. With our fully integrated O2O Marketing Solutions strategy, coupled with the synergies among our core businesses, which have played a key role in boosting growth, we are in a strong position to achieve such goals,” Nelson Leung added.

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