SET Announcements

VGI Global Media (Public) Co., Ltd. or VGI, the first and only one leader of Offline-to-Online (“O2O”) Solutions announced the Performance of 3Q 2018/19 (October – December 2018) achieving the total revenue of THB 1,469mn YoY, resulting in the net profit of THB 309mn an increase of 70.8% growth followed through the strategic plan of every business unit, generated the company’s revenue at the premium kevel as well as pilot phase of new digital screen of an awesome sizes, along 45 meters attractive to the BTS stations users.

Mr. Nelson Leung, CEO, VGI Global Media (Public) Co., Ltd. cited that during the past 3 - 5 years, the company have been able to create the full business cycle, advertising, payment and logistics successfully, as the complete guidelines for VGI to create the unique business model from only the service provider of huge outdoor media to the first market leader with uniqueness in Thailand which can access the in-depth information of the consumers through all the platforms we have in hand. Then we use it as a tool to monitor the brand to communicate with the target groups successfully. Currently, VGI can implement the information from these platforms to push the brand to be able to communicate with the target groups at the right place at the right time, enabling the selling opportunities for customers through the service from “O2O” Solutions strategy. This can be the achievement of the performance brilliantly resulting in the performance of 3Q 2018/19 (October – December 18). The Company performed outstanding growth to THB 1,469mn increasing 50.2% YoY from THB 978mn in the same quarter. The major factor derived from the success in the Strategy to drive the Revenue of the business group of Out-of-Home media (OOH) and the outstanding development of Rabbit Group including the financial consolidation of Trans Ad Group while each business platform of the company has major development as follows:

ADVERTISING – To focus on the development to create smart solution for Digital Advertising media while the out of home media achieved more revenue at 8.2% YoY to THB 968mn, representing 65.9% of the total revenue. The growth of revenue resulted from the prominent growth of all types of advertising media.

Transit Media hit the revenue of THB 576mn, increasing 5.0% YoY, mainly driven by a higher utilization rate. In addition, the Company unveiled the trial pilot of new digital product model of 5 screens, 45 meters wide, accompanying the intelligent technology recognizing pictures and efficiency in assessment from the audience who find the media more thoroughly, enabling VGI to offer advertising campaign directly to the target for the product brand. This pilot phase has been on trial service at Chong Nonsi station for the first place and plan to rolling out an additional 35 new screens by 2Q 2019/20 on the other three stations namely; Asok, Phrom Pong and Sala Dang. After renovation, the company expects that this is another channel to be the major reinforcement of revenue driver for the company.

Office and Other Media grow significantly by 18.0% YoY to THB 96mn. The growth in this quarter was mainly from the increasing of occupancy rate and the increase of media price. During the first 9 months of 2018/19, the company also obtained the contract for media management in 5 more office buildings, reaffirming the leadership of Advertising media management in office buildings with 179 office buildings under the management.

Outdoor Media through the management of MACO, recorded the revenue of THB 296mn, increasing by 11.7% YoY. The main issue was the revenue recognition of 35 screens of digital billboards and advertising media around BTS columns and Street Furniture media while MACO has also been granted the renovation plan of Street Furniture media around BTS sky train columns to convert the former 188 static advertising billboards to be digital in the form of 42 LED screens and 180 Light Box.

PAYMENT (DIGITAL SERVICES) - starting from Rabbit cards, the users are growing leaps and bounds at 10.3mn pieces, increasing 15.4% over the past 9 months achieving almost the set up target of the whole year which the number of users at 10.5mn pieces in March. Rabbit LinePay reached the growth of more than 5.1 users base or 72.6% over the past 9 months achieving almost the set up target the number of users at 5.3 users in March 2019. Whereas the success derived from the synergy between BTS Group (“BTS”) service provider of leading mass transit system and Advance Info Services Public Co., Ltd. (“AIS”) service provider of number one telecommunication service provider of Thailand. BTS and AIS strongly designated to drive more than 40mn customers to use Rabbit linePay (RLP) as the solution of payment instead of cash payment and in December 2018, Rabbit linePay developed the payment service to pave the way to cashless society by providing services for payment by scanning QR Code for BTS passengers. Such development aims to facilitate the BTS passengers which are more than 800,000 persons and Rabbit AEON, micro-loan partnered with AEON over the past 9 months, the outstanding loan amount currently reached THB 1,633mn.

LOGISTICS – Synergy between our advertising and logistics business delivers new marketing solutions. After trial delivering Smart Sampling for almost 5 months, we can deliver more than 150,000 pieces to the target customers through logistics network of Kerry Express.

Advertising Industry this year tends to be promising mainly because of the upcoming election in March 2019 anticipating the money for advertising will benefit from the economic growth and positive confidence. Moreover, the growth of e-commerce marketing predicted to reach the growth at 30% per year driven by the ever-changing lifestyle of the consumers who can access the information including using more online shopping through electronics, smart phone or tablets.

Furthermore, on 11 February 2019, the Board of Directors meeting of the Company has approved the interim dividend payment for the first half of the year on 8 March 2019 to shareholder at the amount of THB 342mn with rate of THB 0.04 per share for the shareholders at the book closing on the record date on 25 February 2019. The payment date of the interim dividend will be 8 March 2019.