Reason to Invest in VGI
1. A unique position to grow revenue
VGI has branched out beyond the traditional offline Out-of-Home (“OOH”) to the online world, where we have successfully established ourselves as the market leader in Thailand. With the integration of OOH and our world-class online/digital platforms, bridged by the utilisation of the Rabbit Data, we envisioned ourselves as the leader in Offline-to-Online (“O2O”) Marketing Solutions, with the aim to create a seamless and meaningful customer experience both online and offline. Our sales strategy has therefore shifted from solely being a platform provider to one that offers O2O Marketing Solutions enabling advertisers to reach their target audiences at every stage of the consumer journey with greater efficiency and effectiveness.
2. Diversified world-class assets
Our diversified portfolio consolidates a multitude of OOH advertising channels from transit, outdoor and street to buildings and airports, with over THB 12,000m inventory on hand. Rabbit Group, our digital spearhead, has also partnered with key players in various industries including transportation, logistics, telecommunications, mobile and messaging and micropayment applications; thus allowing us to reach over 18m reachable data, have allowed us to provide better predictions and smarter solutions for brands with relevant advertising, in the right place, at the right time and with the right message.
3. Leading and exclusive market positions
VGI is the leading provider of OOH media, which is the fastest growing media sector with over 70% market share in Thailand. Given the high barriers to entry in the mass transit industry, our competitive advantage lies in our unique contract portfolio, where we have secured 30-year exclusive contract with our parent company BTS to be the sole media provider in Bangkok CBD areas. At the same time, our future growth prospect is reinforced by our relationship with BTS given its preeminent role in mass transit development in Thailand, and with 5 to 6 times expected increase in transit media capacity by 2022/23. Meanwhile, our subsidiary business, the Rabbit Group, is also the largest micropayment service provider in Bangkok.
4. Largest and most profitable media company
We are the number one listed media company on SET with a market capitalisation of THB 68,459m (USD 2,152m) as of May 2020. We are also the most profitable OOH media company in Thailand and stand among the top five most profitable OOH media companies in Asia, generating THB 4,000m in total sales revenue with a superior profit margin of 35.6% in 2019/20. Our diversified business portfolio, coupled with our leading position in the industry and financial strength over the past years, clearly indicates VGI’s strong growth potentials. While our dividend policy also promises an attractive return for shareholders, offering no less than 50% of our net profit in dividend payment.
Value, growth and innovation are the core elements forming the foundation of our business. Together, they define our strategic direction and structural plan, which constitute the driving force behind our Company’s vision to be the “Pioneering Solutions for Tomorrow”.
We believe in long-term value creation.. Creating sustainable value for our shareholders, partners and society is our fundamental principle.
We aim to achieve industry-leading growth. Strengthening our unique business units and partnering with key complimentary market leaders around the world is our key growth differentiator.
We commit to digital, technologies and R&D excellence to develop and launch new generation products and solutions that meet ever-changing consumer demands.
Outlook and Target:
For 2020/21, we expect to see negative impact on our Advertising business, though our online agency is expected to continue to grow solidly thanks to the increase demand for online advertising. As for Payment, although both offline and online payments are expected to be affected by lower ridership and restrictions on retail operations, online payrment is still believed to be the preferred method of consumers. Lastly, our Logistics business through Kerry Express (Thailand Company Limited is expected to remain resilient due to the change in consumer behaviour. Despite the uncertain outlook resulting from the COVID-19 pandemic, we will strive to maintain our strong financial position by focusing on reduction of expenses and postponement of new investments.
In light of continual uncertainty surrounding COVID-19 and the constantly evolving measures, it is difficult to assess the impact of the pandemic on our financial performance comprehensively. Therefore, the Company is unable to provide a prudent financial guidance for 2020/21 at this time. However, we aim to provide the guidance when the effects can be concretely estimated.