VGI Retains Bright Outlook; Records 54% YoY Growth in Half-year
VGI Retains Bright Outlook; Records 54% YoY Growth in Half-year Profit
BANGKOK, Nov 4, 2013 - (ACN Newswire) - VGI Global Media Public Company Limited, or VGI, Thailand's major provider of out-of-home advertising media solutions, showed impressive half-year (Apr '13 - Sep '13) results, with growth in net profit and in sales by 54% and 24%, respectively. October - December period is the peak season, and the Company has increased its media capacity and introduced new sales packages to accommodate the ongoing demand. Revenue and profit are expected to grow robustly this year.
Mrs Suparanan Tanviruch, Chief Financial Officer of VGI, revealed the company's business performances for the first half of year 2013/14. In the first half, the Company reported total revenue of THB 1,722 million, a growth of 24% YoY from THB 1,391 million and net profit of THB 636 million, a growth of 54% YoY from THB 414 million. The growth, she said, was attributable to the more advertising space from the new 35 single car trains on Sukhumvit line which extended from 3-car trains to 4-car trains since May 2013. Modern trade media and Office building and other media continue to be well received.
She added that, as of the first half of this year, the revenue proportion in the BTS-related media, Modern Trade Media, and Office building and other media stood at 50%, 44% and 6%, respectively. For the revenue growth, BTS-related media and Modern Trade media grew 24% and 22% YoY, respectively, thanks to more advertising space from new bogies and the launching of new sales packages that offered customers' ever growing demand. Further, revenue in Office building and other media grew 15% YoY.
Mr Marut Arthakaivalvatee, VGI's Chief Executive Officer said VGI's media can be found across the BTS skytrain network, Modern Trade stores and Office buildings and these three segments have a well classified target groups. Modern trade media grew slower than expected in second quarter as result of slowdown in private consumption. However, we believe the impact is minimal as the Company will start to see an additional revenue contribution from the delivery of new five 4 car trains and conversion of static to digital media. Further, the capacity of Office Building will increase as a result of the additional 24 buildings adding up to a total of 75 buildings in management portfolio.
"The Company expects 3Q 13/14 results (Oct - Dec) to outperform QoQ in the near term as media industry is heading into its seasonal peak period. Moreover, the Company expects to see additional revenue contribution starting in end of 3Q 13/14 from BTS-related media as a result of the completion of installation and commencement of sales of the platform truss LEDs, which will increase net capacity by 2.5 times and the delivery of additional five 4-car trains which are expected to be fully in service by the end of December 2013. Within Modern trade media, we expect to see the adjustment in sales strategy by launching more customised packages. Further, for Office building and other media, the Company has recently acquired 24 additional contracts into the portfolio, which will increase the capacity by 50%. The Company is cautious and conservative on the effect which may follow by the economic slowdown, and keeping a close eye on the issue," said Mr. Marut.
About VGI Global Media PCL
VGI Global Media Public Company Limited is Thailand's major provider of out-of-home media solutions, having more than 10,000 items of large still-image screens in the BTS skytrain network and large retail stores nationwide. It also has over 11,000 sq.m. of advertising space in the product display zones of large modern trade stores, as well as about 5,000 items of digital screens and media in the BTS platform and train areas, the Tesco Lotus, Big C, and Watson stores, and large office towers throughout Bangkok, and mega LED and outdoor led screens under its management. In addition, the company runs retail shops in 23 BTS stations and radio networks covering nearly 2,000 modern trade stores in Thailand. For more information, please see www.vgi.co.th.
VGI Global Media PCL
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