VGI Global Media (SET:VGI) Announces Strong 3Q 2017/18 Results Amid Industry Slowdown

Feb 16, 2018 16:00 JST

Source: VGI Global Media PCL

Posts 53% Net Profit Growth to THB 240m; Board Declares Interim Dividends at THB 0.036 Per Share

BANGKOK, Feb 16, 2018 - (ACN Newswire) - VGI Global Media PCL (SET:VGI) announced its 3Q 2017/18 (October-December 2017) results, highlighting a total revenue of THB 978 million, a 27% rise amid the OOH ad industry's slowdown in 2017's last quarter, and a net profit from operation of THB 240 million, a 53% rise achieved by efficient cost control. Its management declared dividends for the half-year results of 2017/18 (April-September 2017) at THB 0.036 per share and are ready to assess the last quarter's performances. They are confident that, given the OOH ad industry's bright outlook for 2018, the company will post further growth.

Mr Nelson Leung, deputy chief executive officer (deputy CEO) of VGI, revealed the company's overall 3Q 2017/18 (October-December 2017) positive growth performance, with a total revenue of THB 978 million, up 27% YoY from THB 772 million, and a net profit from operation of THB 240 million, up 53% YoY from THB 157 million. The quarterly net profit growth was contributed significantly by the company's highly effective cost control.

For the Transit media (BTS) segment, VGI posted a revenue figure of THB 549 million, up 28%, thanks to a synergy with Rabbit Group that led to the successful introduction of an efficient offline-to-online (O2O) platform and to the company's position as Thailand's first and only advertising platform provider to offer a combination of out-of-home (OOH) and digital/online advertising platforms, with Rabbit Group's database employed to ensure maximum efficiency, reach and evaluability. Several customers chose the O2O package for "station sponsorship". As at the end of December 2017, the company already sold the package for nine stations (eg McDonald's, AIS) to seven brands.

As for VGI's overseas operations in Malaysia, the company's local subsidiary successfully secured bookings for its platforms at 5 MRT stations and on 20 trains. VGI forecast continued growth for the Malaysian operations and confirmed their ability to complete the planned installation of their platforms at all stations and in all trains and receive greater shared profits from the operations in the future.

For the Office media segment, VGI completed ahead of schedule the installation of its platforms at 10 new buildings in 3Q 2017/18, as a result of which at the end of the quarter it already earned revenue from the platforms at 172 buildings and recorded an over 40% YoY revenue growth. The digital services business generated quarterly revenue at THB 83 million.

The Outdoor media segment managed by MACO achieved a continued outstanding growth rate following a successful installation of 21 digital billboards in provincial areas, which was warmly welcomed by customers as the average OOH platform's utilisation rate rose to 70%. Highest revenue and profit levels were recorded for three consecutive quarters of 2017, which enabled MACO to record full-year figures of THB 932 million in revenue (up 27% YoY) and THB 226 million in net profit from operation, the highest since the launch of the business.

The deputy CEO noted that, due to the impressive quarterly results, VGI posted excellent nine-month results for 2017/18 (April-December 2017), with a total revenue of THB 2,808 million (up 28% YoY) and a net profit from operation of THB 659 million (up 20% YoY). Its board therefore resolved on 12 February to declare interim dividends for the said half-year results at a rate of THB 0.036 per share, or up to THB 260 million in total, with the XD date on 22 February 2018, the record date on 26 February 2018 and the payment date on 9 March 2018.

He added that the company expects to experience continued growth over the last quarter of 2017/18 (January-March 2018) driven by the growing number of customers who choose the "station sponsorship" O2O package in the Transit media segment, the stream of revenue from the early completion of the installation of platforms at 172 buildings in the Office media segment and the growth momentum sustained in the Outdoor media segment by the ongoing demand for advertising solutions to enhance sales and raise brand awareness among the consumers.

In addition, in the digital services segment, as of 31 December 2017, under VGI's offline payment channel, over 8.5mn Rabbit cards were issued with more than 145 brand partners and over 5,200 retail points of acceptance. Under VGI's online payment channel, Rabbit LinePay ("RLP") has over 2.6mn users with more than 600 brand partners. The growth in this segment will also facilitate our efforts to develop advertising solutions with enhanced evaluability in the OOH media.

"For this year, we forecast a healthy growth in the advertising platform industry propelled by a growing economy, higher purchasing power and major events (such as the FIFA World Cup) that will increase advertising spending during the year. These will be great for VGI and allow it to reach the revenue growth target for 2018", he said.

Nikkei, a prominent Japanese media corporation that covers Asian investment, ranked VGI in the top position among the most promising mid-sized listed companies in the South-East Asia version of the "NEXT 1000" series, with the highest EBITDA figures over the past five years.

Analysts at Capital Nomura Securities Plc (Nomura) gave a "buy" recommendation, with a 12-month target price of THB 7.30 per share, for VGI stock.

For more details, contact:
VGI Global Media PCL
Investor Relations Department
Tel: +66 2273 8639; 0 2273 8623
E-mail: ir@vgi.co.th
www.vgi.co.th

Released for VGI Global Media PCL
by Public Relations Department,
MT Multimedia Co Ltd
Contact: Orn-arong ("Fah") Pattaravejkul
Tel: +66 2612 2081 #129
Mobile: +66 8 6884 4458
E-mail: orn_tabo@hotmail.com

Source: VGI Global Media PCL
Sectors: Daily Finance, Broadcast, Film & Sat