VGI Soars! Making a Solid Comeback in Q3 2020/21, recording THB 713mn net profit, as the Company Sets Forth to Tackle all Challenges
VGI PLC, the leader of Offline-to-Online (“O2O”) solutions across advertising, payment and logistic platforms, reports solid gains in Q3 2020/21, achieving THB 713mn net profit, as the Company’s operational performance begins to pick up from the previous quarter, thanks to revenue recognition from the Initial Public Offering (“IPO”) of Kerry Express (Thailand) Public Company Limited (“KEX”).
Commenting on this achievement, Nelson Leung, CEO of VGI, noted, “The COVID-19 pandemic has had tremendous impact on the Thai economy in 2020, inevitably leading to drastic decline in consumer spending and cut back among companies on their advertising spend, which in turn has severely affected the media and advertising industry. Fortunately, however, Thailand’s economy has progressively shown signs of recovery on a quarterly basis, especially during October to December 2020, thanks to the government stimulus packages and the easing of mobility restrictions. Accordingly, VGI was able to make a solid comeback which made up for losses during the first half of 2020/21, recording net profit of THB 713mn and total revenue of THB 680mn, with THB 458mn coming from our Out-of-Home (“OOH”) Advertising revenue and THB 222mn from our Digital Services revenue.”
As regard VGI’s key business highlights and management outlook, the Company’s Advertising segment has continued to provide closed-loop marketing solutions through its diversified media platforms, allowing customers to create brand impact and communicate their stories throughout the consumer journey. In the Payment segment, Rabbit LinePay Company Limited (“RLP”) has introduced an app-to-app top up service which enables RLP users to seamlessly connect their RLP e-wallet with their mobile banking applications. The service is currently available for 3 mobile banking applications of SCB EASY, K PLUS and KMA.
As for the Logistics segment, the IPO of KEX was a tremendous success, with its share price rising by 132% of the opening price on the first day of trading. This accomplishment exemplifies the synergy across the Group’s companies, where VGI was the spearhead in leveraging all media assets under the Group’s platforms to enhance awareness, engagement and conversion for KEX’s investors and interested stakeholders, attesting to the effectiveness of the Group’s Offline-to-Online (“O2O”) strategy in providing closed-loop marketing solutions to create more campaign impact for clients and partners.
“The uncertainty resulting from the second-wave of the COVID-19 pandemic in the country, coupled with the delays in the government’s vaccine distribution plan and other global risk factors, are causes for us to remain cautious. We will closely monitor both domestic and global risks in order to address any challenge in a timely manner, while also continuing to develop our products and services to effectively respond to the new normal trends. At the same time, we will focus on stabilizing our liquidity and maintaining a strong balance sheet to secure gains from future economic rebound. With our diversified portfolios and experience in handling disruptions, we strongly believe that VGI will again overcome the challenge and deliver greatest benefits for all stakeholders,” added Leung.
On 15 February 2021, VGI Board of Directors approved dividend payment based on the operating results of the first half of the 2020 fiscal year at THB 0.02 per share to shareholders who are entitled to dividend payment as of 1 March 2021 (Record Date), amounting to a total payment of THB 172.2mn. The dividends are scheduled to be paid on 15 March 2021.
