Bangkok--28 Jan--VGI
VGI, a leading provider of lifestyle out-of-home media solutions, revealed that its nine-month (April-December 2013) profit increased 41% year-on-year, despite the economic and political difficulties during the third quarter (Oct-Dec’13) and that it has renewed its exclusive contract with Big C, a major modern trade operator, for another five years.
Mrs Supharana Tanwirat, Chief Financial Officer of VGI Global Media Public Company Limited (“VGI”) declared the Company’s operating results for the first nine months (Apr-Dec’13), highlighting its revenue figure of THB 2,508 million (a 17% y-o-y rise from THB 2,146 million) and the net profit figure of THB 953 million (a 41% y-o-y rise from THB 677 million). As for the third quarter results (Oct-Dec’13), it recorded THB 806 million in revenue (a 6% y-o-y rise from THB 761 million) and THB 317 million in net profit (a 21% y-o-y rise from THB 263 million).
“The strong nine-month results were achieved, thanks to the additional digital advertising space which became available on BTS skytrain stations and to the 35 additional single-car trains which were introduced in the middle of the year. Due to prolonged economic sluggishness and political turbulences, Q3 revenues from the office building and modern trade segments were not at the predicted level, but we believe the figures will improve starting Q1 of the next fiscal year,” she said.
VGI’s nine-month revenue consists of revenues from BTS-related media 51%, Modern Trade media 43% and Office Building and Other media 6%. BTS-related media’s figure represents a y-o-y 21% rise while Modern Trade media, and Office Building and Other media climbed 13% and 9% respectively.
Mr. Marut Arthakaivalvatee, VGI’s Chief Executive Officer, said that, overall, VGI still saw an annual growth (April 2013 to March 2014) from last year, especially revenue from BTS-related media. He highlighted that despite the political unrest, number of BTS skytrain commuters is still rising which resulting in an increase in popularity of our BTS-related media. Marut viewed that the current Thailand’s political is a short-term issue and should be resumed to normalcy by the end of 2014 which will push up by the more refining of the world economy. In return, the improving of the world economy overall should boost Thai exports, as a result, the Company expects that VGI customers’ confidence will pick up again. Underlining VGI’s sheer competitiveness and its highly effective out-of-home media products in terms of reach and coverage of the target groups with high purchasing powers, he expressed his confidence that VGI’s will continue to grow in the years ahead.
“The main advertising revenue from BTS-related media grew healthily and it was hardly affected by the economic and political factors. In addition, we have just renewed another 5 years right manage advertising media in Big C, including radio, outdoor and indoor static media and sales floor spaces of Big C nationwide. This reflects the partner’s confidence in our advertising business expertise,” he said.
Marut, the CEO, further mentioned that the Company is relentlessly looking for investment opportunities in ASEAN markets and considering new business approaches to further strengthen its main business.