VGI Records 10% Revenue Growth in Q1 After MACO Acquisition, Eyes Nationwide Integrated Media Platform Through MACO's Takeover of Multi Sign Co., Ltd, Continues Expansion of Airports Media Platform
VGI, a leading provider of lifestyle media solutions, announced its Q1 operating results, highlighting a 10% quarter-on-quarter rise in revenue to THB 551 million, one month after the MACO acquisition. MACO declared its takeover of the business of Multi Sign a major provider out-of-home media solutions, to enable it to add the provincial coverage of target company (which accounts for 99% of the company's national coverage) to its own portfolio (which is currently highly concentrated in Greater Bangkok, at 75% of the total), and build a new out-of-home media platform. VGI's management reiterated its commitments to creating a nationwide integrated media platform to enhance the firm's growth potential, and noted that it is in the process of increasing its stake in Aero Media up to 30% from the current level of 20%, and adding the number of office towers covered to 160 by 2016.
Mr Surachet Bamrungsuk, Chief Executive Officer, VGI Global Media Public Company Limited (SET: VGI), announced the company's Q1 (1 Apr-30 Jun) results, which show a 10% rise in revenue to THB 551 million from THB 500 million achieved over the last financial year's Q4, and a 49% rise in net profit to THB 313 million from THB 210 million over the last financial year's Q4.
The Q1 growth was achieved following an expansion of the firm's outdoor advertising coverage through an increase in equity interest in MACO to 37.42%, as well as an increase in the number of office towers covered to 142 from 103 in the previous year. He noted that the number will rise further to 160 by this year end.
For this year's remaining period, VGI has planned to continue its effort to build a nationwide integrated media platform, which will enable it to record a revenue growth for the current year within a range of 40-50%. Recognising the significant room for growth and high purchasing power in provincial cities, and in response to the recent introduction of the Asean Economic Community (AEC), which will stimulate the domestic aviation industry and, hence, increase advertising spending in the aviation segment, it is in the process of increasing its share percentage in Aero Media up to entitled limit of 30% from the current level of 20%. Aero Media is holder of the licences to manage various forms of advertising at 13 Thai airports that are run by Airports of Thailand Public Company Limited and the Department of Civil Aviation.
VGI will also benefit from MACO's decision to expand its out-of-home media platform through acquisition of 70% of the shares in Multi Sign owner of more than 900 items of outdoor advertising media tools in Thailand, which will expand VGI’s customer base from Bangkok-centric to mass market nationwide.