Bangkok--15 Aug--BTS Group Holdings
BTS Group started fiscal year 2019/20 with an exceptional performance, posting operating revenue of 9,086 million baht (increasing 5,996 million baht or 194% from the preceding year) and recurring net profit of 1,006 million baht (growing 534 million baht or 113% YoY). This was supported by the swift and on plan progress of its rail transit expansion and the unrelenting innovation across the Advertising, Payment and Logistics platforms under VGI PLC, its Media subsidiary.
Kavin Kanjanapas, Chief Executive Officer of BTS Group Holdings PLC (BTS Group) elaborated, "On the back of another decent quarterly performance, BTS Group continues to beat prospects - referring to the company's 5 year guidance of recurring net profit to grow 25% per annum on average. This is the culmination of groundwork laid in the previous two years and we anticipate the growth trajectory to continue from securing additional mass transit projects to be bid in the future".
This quarter (April – June 2019) was a remarkable start for our Mass Transit business. Mass Transit revenue soared to 7,208 million baht, representing growth of 298% or 5,395 million baht YoY, largely from the recognition of construction revenue for the Pink and Yellow lines of 4,335 million baht and an increase in services revenue from the provision of E&M works and the train procurement for the Southern and Northern Green Line extensions, which rose by 444 million baht or 48% YoY to 1,370 million baht. Additionally, the full opening of Southern Green Line extension (Bearing – Kheha) in December 2018 resulted in higher Operating & Maintenance (O&M) revenue of 378 million baht, up 84% YoY to 830 million baht.
On the Media side, VGI also delivered a vigorous set of results since the beginning of fiscal year. Revenue rose 25% YoY or 274 million baht to 1,392 million baht. The springboard for top-line growth in this quarter was from higher revenue in the Digital Services segment, which was mainly from the consolidation of Trans.Ad Group (a system integration and total solutions services provider) and organic growth from Rabbit Group. Net profit stood at 304 million baht as a result of considerable increase in realisation of synergies from all segments under VGI.
VGI continues to innovate via expansion into adjacent businesses and technologies as well repackaging product offerings to customers, creating unique value for its customers. Synergies on product development in collaboration with PlanB are already materialising and these are already driving revenue growth.
Mr. Kavin elaborated, "It is encouraging to see the government reinforcing policy priority in favour of further mass transit projects both in Bangkok and upcountry. With the strategic focus of the Group firmly directed towards the deployment of mass transit, we expect significant benefit to our Mass Transit business as well as follow on benefits to our Media, Property and Services segments. With over 19 years of experience in Rail Mass Transit, we are now standing ready and extending our interests wider to explore further opportunities within the Transportation and related Infrastructure arena to serve our mission that we aim to be the leading and sustainable solutions provider to Bangkok's residents. This will not only help improve their quality of living, but also create value and enable us to deliver sustainable returns to our shareholders."
Daniel Ross, BTS Group Chief Investment Officer added "Our mass transit business will continue to be the primary driver of our revenue and earnings growth. The new government has reaffirmed its commitment to expanding Bangkok's rail mass transit network. We are working full steam ahead to concurrently develop the new Pink and Yellow lines, as well as extensions to the Green Line which will triple the length of track that BTS currently operates, by the end of 2021". On 9 August 2019 and on schedule the first station of the Northern Green Line extension (N9: Ha Yaek Lat Prao station) began trial operation. Subsequently, the opening of four more stations (up to N13: Kasetsart University station) is expected by the end of this year.
Mr. Ross articulated further, "We are confident that the opening of these first five stations in this fiscal year will feed additional passengers to our Core Network as well as to significantly bolster our O&M revenue". The full operation of this entire route from Mochit – Khu Khot (totaling 17.8km, 16 stations) is expected to begin in 2020.