SET Announcements

VGI Global Media Public Company Limited or VGI, the first and only leader of Offline-to-Online (“O2O”) Solutions announced the performance of Q2 in 18/19 (July – September 2018) having the total revenue of THB1,208 mn, an increase of 23.5% YoY with the support of the performance with has grown up according to the strategy set up for OOH and the tendency of the performance result from development of every business group thus encouraging the company to generate increasing continually revenue.

Mr. Nelson Leung, CEO of VGI Global Media Public Company Limited cited that, during the past decade, it was obviously seen that the global changes from the influence of internet involving the communicating behavior of people in this era. This is why the advertising sector has to adjust itself to access the consumers in timely manner.

VGI anticipated such changes, therefore starting to shift the strategy from doing business from the large OOH alone to be the leader of the market with the unique and outstanding to access the in-depth data of the consumers through Advertising Media platform, payment service platform, and logistics platform by integrating these data to boost the sale serving the demand of the customers at 360 degree, aiming to develop products used as the instruments for pushing the brand to communicate with the clients at every place and every time. All these restructuring will enable VGI to have the infrastructure for the growth and more compatible in the market. For this quarter, the net profit of the company increased to THB 260 mn, growth 28.8% YoY, which each business platform generated significant development starting from:

Advertising: The Company strengthened the business by expanding the network to overseas and increased the digital ability through the cooperation with the major partners under the management of Master Ad Public Company Limited or MACO whereas this quarter, OOH revenue was at THB 909 mn increasing 2.0% YoY. The surge of the revenue was monitored by the outstanding performance from Outdoor and Office & Other media businesses.

Transit media: the revenue was THB 535 mn , 7.2% dropped YoY. The main reason was the end of O2O Solutions campaign contract on BTS sky train with the revenue at THB 57 mn, dropped from THB 87 mn YoY. As most of the contract of O2O Campaign Solutions was ended in June 2018 which is the accounting year of the customers and Advertising Media. However, the company expected that such drop will be only a short term impact and believed that the customers will return to use the media as usual during the rest quarter of this year.

Office & Other media: The revenue was THB 109mn increasing 31.7% YoY. The main factor was the increasing rate of media usage including the prices increment of Advertising media in the building. In addition, the company was also granted 3 contracts to manage media in the building with the total number of 177 buildings altogether and 1,374 digital screens.

While the Outdoor media recorded the revenue at THB266 mn, increasing 14.4% YoY, the main reason was from the continuing revenue recognition from 35 screens of Digital billboards.

Payment (Digital Services)

The development of users is increasing with leaps and bounds starting from Rabbit LinePay during the past 6 months, the users increased by 55.2% or 4.5 million users whereas the supporting significant factor from the modifying the new application on LINE application to be more convenient and easier to use. On 30 October 2018, RLP and BTS announced the soft launch of “Bind, Tap & Ride” service across 20 BTS stations allowing more than 800,000 BTS passengers to enjoy and even more convenient and seamless experience daily while the Rabbit Card users can bind such card with RLP to become single e-wallet.

This service will be regarded as a significant step of the group of companies to drive the society to the cashless society. This also includes the smooth and seamless traveling experiences for the BTS passengers. For Rabbit card, the number of offline payment through Rabbit Card circulation reached 9.8 mn cards nearly achieving its full-year target of 10.5 mn cards. RABBIT AEON Rabbit, a micro-loan business achieved a total outstanding loan balance of THB 1,529 mn during the past 6 months while the growth of digital service business in Q2 18/19 was THB 299 mn increasing by 243.6% YoY. The main reason is the financial statement consolidation of Trans Ad group by MACO including the increasing of the project management and selling Rabbit Card of Rabbit Group.

Logistics – Synergy between our advertising and logistics business delivers new marketing solutions. In the past quarter, VGI partnered with Kerry Express to soft lunch smart sampling through Kerry Express network. Within 1 month of product launch, the company has successfully delivered 70,000 pieces of top FMCG Brand products with a significantly higher conversion rate of 3-5% compared to the industry norm of 0.5%.

From now onwards, the Advertising Media market tends to achieve better growth resulting from the up-coming election in the beginning of 2019, expecting positive result to the overall economics benefit for Advertising budget. Furthermore, the growth of e-commerce expected to reach 30% annually due to the lifestyle of the consumers who appreciate using more smart phones and tablets as well as the consolidation of financial statement of Tans Ad encouraging the company to increase the targeted revenue in 2018/19 to THB 5,000 mn from previous target at THB 4,400 – 4,600 mn and projected that the net profit rate of the company will reach 20 – 25%, cited CEO.