Bangkok--12 May--MasterMind Communications
VGI, Thailand’s leader in the lifestyle out-of-home media industry, revealed that its profit for 2013/14 (Apr’13-Mar’14) stood at THB 1,146 million, a year-on-year 27% rise, despite the gloomy results of the fourth quarter (Jan-Mar’14), which covered the low season and was affected by the economic slowdown by reason of politics. Its management noted that the sales space still has to be fully utilised as the purchasing power, especially in the modern trade segment, was affected by external factors in the second half of the year, and expected a recovery after an end to the crisis.
Mrs Suparanan Tanviruch, Chief Financial Officer of VGI Global Media Public Company Limited, announced the company’s operating results for year 2013/14 (Apr’13-Mar’14), highlighting the revenue figure of THB 3,196 million, a 11% increase from THB 2,872 million in the preceding year, and the net profit figure of THB 1,146 million, a 27% increase from THB 902 million in the preceding year. As for the results for the fourth quarter (Jan-Mar’14), the company’s revenue reached THB 657 million, a 7% year-on-year reduction from THB 705 million in the preceding year, and its net profit THB 193 million, a 14% year-on-year reduction from THB 225 million in the preceding year. The company successfully maintained its growth momentum, thanks to the 18% rise in revenue from BTS-related media as a result of an introduction of new digital media space at the BTS skytrain stations, as well as the 4% and 6% increases in revenue from Modern Trade media, and Office Building and Others media, respectively. The overall annual growth rate was lower than forecasted, which was partly attributable to the economic and political impacts over the second half of the company’s fiscal period ending March; however, it was still higher than the 1%([1]) reduction in the overall advertising industry. VGI’s growth rates in BTS-related media and Modern Trade media were also more satisfactory compared with the growth rates of 10%(i) of the industry’s mass transit segment and contraction of 12%(i) of the industry’s in-store segments.
‘Past year’s revenue growth was achieved by the launch of platform truss LED screens and platform screen doors as new digital media in the BTS skytrain system, and by full-year recognition of revenue from the 35 new cars of BTS skytrain that were gradually put into service since the previous year. In addition, in the office tower segment we increased the number of office towers from 50 to 75 and the number of LCD screens from 452 to 656. Our sales team also effectively coped with this year’s economic slowdown by making changes to the company’s sales strategies, eg offering special discounts to buyers of advertising service during the promotion periods, reducing package size to attract small businesses with limited advertising budgets, adding more variety to the modern trade packages, etc. All these helped us in keeping up sales growth momentum and reaching a growth rate that was above the industrial average.’
VGI’s 2013/14 total revenue consists of revenues from the BTS-related media 53%, Modern Trade media 41% and Office Building and others media 6%. The company recorded a gross margin of 57% and a net profit margin of 36%, an increase from 55% and 32%, respectively, in the previous year.
The Media Agency Association of Thailand (MAAT) forecasted the overall advertising expenditure in 2014 (Jan-Dec) to grow 5%, the mass transit advertising expenditure to grow 14% and the expenditure for in-store media to contract by 1%, and expected the ‘World Cup’ soccer event to boost revenue income. VGI also anticipated that, if the political climate is improved and the public-sector activities are resumed shortly, the market will pick up in the second half of the year and the company’s 2014/15 revenue will grow 13 - 17%.
[1] Use the data from Apr 2012 – Mar 2013 and Apr 2013 – Mar 2014 (same as The Company’s fiscal year).