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VGI Poised to Tackle all Challenges, Announcing THB 980mn Net Profit in 2020/21

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VGI PLC, the market leader in Offline-to-Online (“O2O”) Solutions across Advertising, Payment, and Logistic platforms, announced a strong end to a challenging year, delivering yet again a solid performance for FY 2020/21, achieving THB 980mn net profit, despite COVID-19. Thanks to a robust O2O strategy and strong strategic alliances, enabling risk diversification and operational flexibility, the Company has proven capable of navigating all challenges.

Commenting on this achievement, Mr. Nelson Leung, CEO of VGI, noted, “Last year, the COVID-19 pandemic sent shockwaves across the world, plunging most countries into recession. Thailand, like any other countries, was hit hard due to the numerous nationwide lockdowns, which slashed consumer confidence and left damaging impacts on business and public life. As a result, VGI saw its total revenue drop by 38.0% YoY to THB 2,480mn, with THB 1,540mn coming from Out-of-Home (“OOH”) Advertising and THB 940mn from Digital Services. Still, the Company managed to achieve solid net profit at THB 980mn.”

As regard key business highlights and management outlook, in the OOH Advertising segment, despite being severely impacted by COVID-19, VGI has proceeded with improvements of its OOH media assets and campaigns. In the Payment segment, digital and online services of Rabbit Group – VGI’s digital solutions spearhead – continued to mount, in turn helping to strengthen the Company’s digital payment platform and generate growth for the entire Group. Meanwhile, Rabbit Card and Rabbit LinePay (“RLP”) continued to experience strong user growth, with Rabbit Card witnessing an increase of 9.0% from 13mn cards to 14.2mn cards, and RLP seeing its users grow by 11.8% YoY from 7.3mn to 8.2mn.

As for the Logistics segment, VGI played a key role in spearheading Kerry Express (Thailand) Company Limited (“KEX”) IPO through all of its media platforms. Moreover, VGI and KEX have carried on developing new synergy products and services, including the delivery of sampling products and attachment of parcel sticker ads on more than 1.6mn parcel boxes; installation of wrap advertising on over 700 Kerry trucks; and the launch of Kerry parcel shops on 4 BTS stations. In addition, a new “Driver Handover” service was introduced, which enables retailers and brands to deliver product samplings handled by KEX couriers to end consumers.

Despite the sharp economic contraction in the past year, the situation in Thailand appears to be taking a brighter turn in 2021, thanks to the Government’s economic stimulus measures and plan to distribute the COVID-19 vaccine throughout the year. Accordingly, VGI expects to see its revenue grow by 50% in 2021 to the tune of THB 3,500 – 4,000mn, with a net profit margin in the range of 15 – 25%. Nevertheless, with the latest wave of the outbreak, which began in April 2021, the Company must continue to closely monitor the situation, while stabilising liquidity and maintaining a strong balance sheet in order to be ready to tackle sudden disruptions. It is strongly believed that once the market rebounds, VGI will be well-positioned to deliver a robust performance in the best interests of all stakeholders.

Notwithstanding the setbacks in FY 2020/21, payment of cash dividend at THB 0.041 per share from the operating results of 2H 20/21 has been approved by the Boards of Directors. The payment is still subject to the approval of the shareholders’ meeting.