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VGI Global Media Raises Revenue Growth Forecast to 30%
Reports utilization of proceeds from the IPO of THB 113 million on BTS Platform and Modern Trade Media
BANGKOK, Apr 11, 2013 - (ACN Newswire) - VGI Global Media PLC (VGI), the leading lifestyle media provider listed on the Stock Exchange of Thailand (SET), has raised its top-line growth target in 2013/14 to 30%, up from the previous estimate of 15-20%, as a result of projections for strong performance in the various key revenue-generating segments - Mass Transit Media, Modern Trade Media and Office Building & Other Media. Further announcements were made on the utilization of proceeds from the IPO of THB 113 million on the BTS Platform Screen Doors (PSD), which serve safety purposes as well as generate revenue. Installation of PSD are now complete at Siam Station while works are in progress for similar installations at other stations, namely Asok, Chit Lom, and Sala Daeng.
Marut Arthakaivalvatee, Chief Executive Officer of VGI Global Media, stated that the annual operation result for 2012/13 (1 April 2012 to 31 March 2013) is on course with the target growth of 40% from the previous year. The revenue from the first 9 months was already THB 2,167 million and net profit was reported at THB 684 million. The strong growth was from the key revenue-generating segments - notably, Mass Transit Media, Modern Trade Media, and Office Building & Other Media as well as aggressive marketing plans in this year. VGI has adjusted next year's target (fiscal year 2013/14) to 30% growth from 2012/13, up from the previous estimation of 15%-20%.
"The annual target in the next financial year (1 April 2013 to 31 March 2014) will come from Mass Transit Media, Modern Trade, and Office Buildings & Other Media with a contribution of 20%, 40% and about 20%, respectively," Marut said.
Marut further revealed that VGI has completed the first phase of the ongoing project to install PSD at Siam Station by utilizing funds raised from the successful IPO in October last year. The Company spent approximately THB 113 million, in which THB 80 million was for the PSD and digital media on the screen doors at Siam Station as well as at Asok, Chit Lom, and Sala Daeng Stations. The safety of BTS passengers is a top priority; therefore, the Company will start installation in crowded stations in the Central Business District (CBD) first.
"VGI has given priority to install the Platform Screen Doors at the CBD stations in order to provide maximum safety for the large number of commuters using these busy stations. At the same time, the Company is also generating additional revenue estimated at about THB 36 million annually from digital advertisement screens adjacent to these new screen doors," Marut said. He went on to say, "Two other projects have also started. One is investment in Digital Media Network System and Static Media in BTS-related Media and Modern Trade Media, which required about THB 22 million, and the other project is a THB 10 million investment in Enterprise System Software Management and improvement in the IT network to support future business expansion."
Marut reassured VGI shareholders and investors that all proceeds from the IPO are being utilized in accordance with the stated objectives of enhancing the Company's business expansion and generating high returns to shareholders.
VGI's robust growth corresponds with Thailand's thriving advertising industry which is estimated to grow by 10% in 2013 to the aggregate value of about THB 140 billion. Compared to the total industry in 2012, the advertising segments in which VGI is a dominant player are still relatively small - 2.5% market share for Mass Transit Media (worth about THB 2.96 billion) and 2.3% market share for the Modern Trade Media (worth about THB 2.73 billion) - and therefore offer huge growth potentials in the future.
Contact:VGI Global Media PLC
Investor Relations Department
Tel. +66-2273-8611 ext. 1528, 1539
E-mail: ir@vgi.co.th
Master Mind Communications Co, Ltd.
Public Relations Department
Orn-anong "Fah" Pattaravejkul
Tel: +66-2612-2081 ext. 129
Mobile: +66-8-6884-4458
E-mail: orn_tabo@hotmail.com
Source: VGI Global Media PCL
Sectors: Daily Finance, Broadcast, Film & Sat
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