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VGI Global Media Announces Striking Profit FY12/13 Rise of 226%
- Board of Directors approved Cash and Share Dividends worth THB 450 mn
- Planned THB 260 mn investment in refining Multimedia Network to boost its Top-Line FY13/14 growth to 30%
BANGKOK, May 16, 2013 - (ACN Newswire) - VGI Global Media Public Company Limited ("VGI"; SET:VGI), the leading lifestyle media provider listed on the Stock Exchange of Thailand (SET), reported an impressive net profit growth for fiscal year 2012/13 of 226% YoY. Revenue jumped by 43% to over THB 2.8 bn led by growth from all business lines. The Board of Directors also approved the payment of cash dividend of THB 1.40 per share for the second half performance plus stock dividend at the ratio of 10 existing shares per 1 stock dividend or equivalent to THB 0.10 per share at par value.
Senior executives revealed that the budget of THB 260 mn will be invested in multimedia on the BTS Skytrain System, to welcome a storm of ad orders which will come with the rise in BTS ridership, currently at approximately 700,000 passengers per day. Meanwhile, Modern Trade Media Team has prepared to boost occupancy in Sales Floor to 60% this year, while the Office Building Media has just grabbed new contracts on 12 buildings. VGI is confident in achieving the 30% revenue growth target this year.
Mrs. Suparanan Tanviruch, CFO of VGI, presented fiscal year results 2012/13 (1 Apr 2012 - 31 Mar 2013) on May 15th: VGI achieved total revenue of THB 2,872 mn, a growth of 43% from THB 2,005 mn in the previous year. Net profit for the year was THB 908 mn, a 226% growth from last year, which had net profit of THB 278 mn. The revenue for fourth quarter (1 Jan - 31 Mar 13) was THB 705 mn, while net profit was THB 224 mn. The CFO explained that the growth in profit was contributed from all the company's main revenue streams - namely, the BTS-related media (up 24%), Modern Trade media (up 66%) and Office Building and other media (up 107%).
"Clients have used our media networks and proven that our media are highly effective for brand-building and sales boosting. They're all satisfied with the results because each of our networks has relatively definite and visible target group. Advertisers can choose target group and deliver marketing message more specifically. With the strong growth of Thailand's economy, Advertising industry is expanding and have a positive effect to VGI's business."
Ms. Suparanan stated that "there had been a significant change in Net Profit because since mid-May 2013, VGI pays lower concession fee to Bangkok Mass Transit System Plc. ("BTSC") according to the new concession agreement. However, without the reduction in the concession fee, VGI can still present a growth in Net Profit."
VGI's chief executive officer Mr. Marut Arthakaivalvatee said that recently the ministry of Finance has adjusted the Thailand's GDP growth from 5% to 5.3%. The driver will comes from domestic consumption such as improvement in employment rate, 300-Baht minimum wage, also the government is investing in mega projects. All those reasons support that the growth of the Thailand's advertising industry this year is promising. The Advertising Association of Thailand estimated that in 2013, the industry will grow more than 10%, or grow up to THB 140 bn.
To cope with the rising demand of clients, Mr. Marut said that VGI has planned to invest THB 260 mn to upgrade multimedia on the BTS skytrain platforms into larger sizes and replace them in more strategic locations for sharper clarity. After the installation finished, VGI will repackage digital media which each pack will have more specific target viewers. New packages can create powerful impact on target group and help advertiser to deliver better marketing message to their target.
Mr. Marut added, "Under Modern Trade media, VGI still have more space in Sales Floor to develop. We've added more head-count to sales team which will covers nationwide branches of over 300 branches of Tesco Lotus and Big C to take care of customer's advertisement. For the Office Building Business, VGI has already added 12 building into portfolio, which will make the current 51-building network a 63-building network. For other media, VGI is now the exclusive selling agent for the Airport Link and Outdoor LED screens at 10 key traffic intersections in Bangkok. All in all, VGI will have a strong and relatively complete digital network on strategic locations, BTS, Modern Trade, Office Building, and Outdoor LED, which are all centrally controlled.
"I am confident that our 30% topline target growth is achievable. The economy is growing strongly while politics is quite stable. From the second quarter (1 Jul - 30 Sep 13), the additional 35 train carriages will complete installation on to the BTS's train system. Plus, the multimedia improvement on BTS's stations, the more efficient customer-care team for Modern Trade, and the expansion of the Office Building's portfolio, which apart from the 12 buildings, are about 8-10 buildings that were high potential to be included I believe we can make it," Mr. Marut stated.
VGI is currently Thailand's leading out-of-home lifestyle media provider, managing static adverting media network on the BTS SkyTrain system and in large-format modern trade outlets across the country, with more than 10,000 displays, over 11,000 sq.m. of advertising area in Sales Floor areas in modern trade outlets, and digital advertising media network on BTS stations and trains, digital media in Tesco Lotus, Big C and Watsons stores and in office buildings across Bangkok with a total of 4,600 screens. VGI also manages merchandising space on 23 BTS stations and manages in-store radio media network in modern trade outlets of about 1,700 branches nationwide.
Contact:Investor Relations Department
VGI Global Media Public Company Limited
Tel. +66 2273 8611 ext. 1528, 1529
E-mail: ir@vgi.co.th
Master Mind Communications Co., Ltd.
Public Relations Department
Contact: Orn-anong "Fah" Pattaravejkul
Tel: +66-2612-2081 ext. 129
Mobile: +66-8-6884-4458
E-mail: orn_tabo@hotmail.com
Source: VGI Global Media PCL
Sectors: Daily Finance, Broadcast, Film & Sat
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