BANGKOK — VGI Global Media PCL (SET:VGI), or VGI’s board declared interim dividends at THB 0.035 per share (approx THB 240mn in aggregate) to preserve investors’ confidence amid a q-o-q slowdown in Q3 of FY2016/17 due to reduced advertising spending during the 30-day national mourning period and investment expenditure to bolster regional growths.
They are confident that successful construction of the ‘Data Centric Media Hypermarket’ platform will bring in substantial revenue in FY2017.
Surachet Bumrongsuk, Chief Executive Officer of VGI Global Media PCL, or VGI, a data centric media hypermarket, revealed the decision adopted at the 1 Feb 2017 board meeting to declare interim dividends at THB 0.035 per share (approx THB 240m in aggregate), with 10 Feb as the XD date, 15 Feb as the record date and 27 Feb as the payment date.
For the 9-month results of FY2016/17 (Apr-Dec’16), VGI recorded THB 1,935mn in total revenue, a 20% y-o-y rise, driven largely by the revenue earned following acquisition of equity shares in MACO, and THB 635mn in net profit, down 13% y-o-y, due to a 12% drop in advertising spending in the industry in 2016, the sharpest decline of adspend in nearly ten years.
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Also contributing to the result was the increased one-time expenditure of several M&A and business development to expand advertising media business, including investment in Titanium Compass Sdn Bhd, holder of a 10-year license to manage advertising platforms on a new MRT line in Malaysia, which is expected to become fully operational by mid-2017, as part of VGI’s efforts to grow in other Asean markets.
“Amid the slowdown in the advertising media industry during the national mourning period, and despite the investment expenditure incurred to enhance VGI’s opportunities both locally and internationally, we decided to pay dividends to the shareholders regularly to maintain investors’ confidence,” he said.
The CEO added that the investments made over the recent period will strengthen VGI Global’s position as a “Data Centric Media Hypermarket” with a capability to obtain consumer behaviour data for analysis and planning, including selection of media platforms (at BTS skytrains and stations, office building, LEDs in condominiums, billboards in Bangkok and the provinces, media in airport as well as activation media) to ensure better focus on target audience and efficient ad performance.
He saw that VGI Global will earn significant revenue in FY2017/18, with a continued healthy growth in the out-of-home (or OOH) media segment that will enable VGI to achieve satisfactory performances in the year. – BusinessNewsAsia.com