Strong performance underscores the success of combined OOH platforms and digital services.
BANGKOK — VGI Global Media PCL (SET:VGI) has posted strong financial results in 2Q 2017/18 with record-high revenue of THB 978 million, up 24% YoY, and net profit of THB 228 million, up 10% YoY. The strong performance underscores the success of its new strategy in combining out-of-home platforms with measureable digital services while senior management is confident of hitting the THB 4,000 million revenue target for the full fiscal year 2017/18 supported by the strong economic recovery and election.
Mr Nelson Leung, deputy chief executive officer (deputy CEO) of VGI, stated the company’s 2Q 2017/18 (July-September) financial performance, which shows the record-breaking total revenue of THB 978 million, a 24% YoY rise. The outstanding growth rates of all segments reflect the success of VGI’s new strategy of integrating online and offline media platforms which creates perfect synergy between the group’s vast out-of-home (OOH) media outlets and its access to the Big Data from the Rabbit Group.
Notably, for the Transit media (BTS) segment, revenue jumped 21% YoY to THB 576 million, driven by an expansion campaign conducted jointly with Rabbit Group through analysis of consumer profile and behavior data on Rabbit Group’s database, which enhances communication effectiveness and facilitates the designing of offline-plus-online advertising solutions that satisfy customers’ demands and, most significantly, the evaluation of campaigns.
In the Office media segment, VGI has expanded its office building network faster than expected with the addition of eight new buildings in the first six months out of the full-year target of 10 new buildings. Management, therefore, is confident that the full-year target of 172 buildings will be reached while revenue from this segment rose 12% YoY to THB 83 million in this quarter.
For the Outdoor media segment managed by MACO, the revenue reached a new high at THB 232 million, up 52% YoY, boosted by the conversion of static billboards to digital billboards as well as the expansion of the MACO’s network through new investments in Multi Sign and COMASS, which raised MACO’s total media capacity from THB 900 million to THB 1,400 million and, in turn, contributed positively to the the second quarter performances.
For the digital services business managed by Rabbit Group, the revenue level stood at THB 87 million increased by 0.3% YoY. Currently, under offline payment channel, over 8.1mn Rabbit cards were issued with more than 133 brand partners and over 4,400 retail points of acceptance. Under online payment channel, Rabbit LinePay has over 2.4mn users.
“These quarterly results are our great achievements, as the revenue reached the highest level ever. It shows that our strategy is right and has enabled us to reap handsome revenue from all segments,” said Mr Nelson Leung.
The deputy CEO added that, thanks to the above results, the net profit for 2Q 2017/18 reached THB 228 million, up 10% YoY, amid the advertising platform industry’s overall decline.
This October is the period during which the funeral of His Majesty the late King Bhumibol Adulyadej takes place. As an OOH media company, VGI has followed the advertising guidelines set by Media Agency Association of Thailand and Digital Advertising Association (Thailand) by applying greyish colour tone to its digital advertisements for the one month. However, the impact is expected to be minimal to the full-year performance.
As for the advertising industry’s outlook between now and the end of the company’s fiscal year in March 2018, the company has projected stead increases in advance bookings and strong overall growth due to the better-than-expected economic recovery, the political stability and election. Therefore, management is confident of reaching the full-year revenue target of THB 4,000 million.