SET-listed VGI Global Media Plc, which provides media space on Bangkok's skytrain system, is optimistic about achieving its revenue target of 4 billion baht this fiscal year ending March 31, 2018, with help from integrated media advertising platform and digital services.
Deputy chief executive Nelson Leung said VGI reported outstanding growth performance in the second quarter (July-September), with revenue rising 24% year-on-year to 978 million baht and a net profit of 228 million baht, up 10% from the same period last year.
The growth reflects the an effective strategy in integrating the firm's media advertising platform, which combines out-of-home (OOH) advertising and digital services, he said.
Of the total channels, the company reported revenue from media on mass transit segment (BTS skytrain) climbed 21% for the period to 576 million baht, driven by an expansion campaign conducted jointly with Rabbit Group through analysis of consumer profile and behaviour data on Rabbit Group's database, which enhanced communication effectiveness.
In the office tower segment, VGI also fared better than expected. For the first six months of this fiscal year, the company has installed advertising on eight new office buildings from 10 targeted for this fiscal year.
The company is hence confident its advertising in the office tower segment will reach a total of 172 towers at the end of this fiscal year. For the second quarter, this segment's revenue stood at 83 million baht, up 12% year-on-year.
The OOH advertising business run by Master Ad Plc (MACO) saw revenue reach 232 million baht, up 52% year-on-year, thanks to the replacement of still-image platforms with digital ones and the expansion of the company's advertising platform network through investment in Multi Sign and Comass, which raised MACO's media capacity from 900 million to 1.4 billion baht.
The digital service business run by Rabbit Group posted revenue of 87 million baht. The number of Rabbit Cards issued was 8.1 million, and the number of Rabbit Line Pay users was 2.4 million, connecting to more than 133 brands of allied shops.
"Amid the overall decline of advertising platform industry, VGI's net profit for the second quarter still performed very well, thanks to the good management this year in every segment," he said.
Mr Leung said VGI has followed the advertising guidelines set by Media Agency Association of Thailand and Digital Advertising Association Thailand by applying greyish tones to digital advertisements for the whole month.
Mr Leung said there was only a slight impact on the full-year results from the media shutdown during the royal cremation period.
Mr Leung, who is deputy chief executive of VGI, said OOH has a bright outlook in advertising next year thanks to the ongoing economic recovery and the upcoming general elections.
He is also optimistic that total revenue for the 2017 fiscal year will reach 4 billion baht target.
Mr Leung forecast that ad spending will pick up, with more advertising bookings following the recent announcement of economic figures that were better than expected, and given the current political stability and the certainty about the general elections.
VGI reported 3.05 billion baht of revenue in fiscal 2016, ending March 31 this year, up 30% from 2.34 billion in fiscal 2015. Net profit was 826 million baht in fiscal 2016, down from 940 million baht one year earlier.
VGI shares closed yesterday on the Stock Exchange of Thailand at 6.15 baht, up 25 satang, in trade worth 203 million baht.
