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VGI Global Media (SET:VGI) Annual Results; Net Profit Rose 19%
Declares 2nd-Yr-Half Dividends at THB 0.06 per share; Ready to expand its media network nationwide through MACO acquisition leading to 50% expected revenue growth in 2016/17
BANGKOK, May 12, 2016 - (ACN Newswire) - VGI Global Media PCL (SET: VGI), Thailand's leading provider of lifestyle out-of-home media solutions, announced its operating results for 2015/16 (Apr '15 - Mar '16), highlighting a 19% y-o-y jump in net profit. It has declared dividends for the second year-half (Oct '15 - Mar '16) at THB 0.06 per share. Management is expecting an explosive growth in 2016/17 as its acquisition of Master Ad PCL (SET: MACO) will enhance its business competitiveness and strengths.
Mrs Suparanan Tanviruch, Chief Financial Officer, VGI, announced the Company's operating results for 2015/16 (excluding Modern Trade), 3% y-o-y increase in total revenue to THB 2,056 million from THB 1,994 million and a 19% y-o-y increase in net profit to THB 954 million from THB 799 million. Net profit margin rose as high as 46% as a result of business restructuring as the Company decided to terminate the Modern Trade media which is a low-margin business segment since the beginning of its financial period as well as the gain on sale from investment in its subsidiary and joint venture.
The growth rate of the office building and other media increased by 28.6%, following the successful move in 2015/16 to increase the number of office building coverage by 135, higher than the target of 123, despite the overall negative growth rate of -1.2% posted by the advertising media industry as a result of the economic slowdown and weakening domestic purchasing power.
"In spite of the past year's gloomy economic outlook due to both internal and external factors which affected consumer confidence and resulted in an overall negative growth in advertising spending, we could manage to record decent growths in revenue and net profit. That reflected our sheer competitiveness," said she.
Given the operating results, VGI's board have resolved to declare dividends for the second year-half (1 Oct '15 - 31 Mar '16) at THB 0.06 per share, with the book-closing date at 14 July 2016 and the payment date at 29 July 2016. As interim dividends were declared for the first year-half at THB 0.05 per share, dividends will be paid for 2015/16 at a total of THB 0.11 per share.
Mr Marut Arthakaivalvatee, VGI's member of the Executive Committee and Chief Executive Officer, added that the Company's strategy is to focus on expanding its out-of-home advertising media network to achieve the ambition to create a nationwide integrated media platform within two years, as a way to enhance business potential, especially in the areas of transit/BTS, office, airport and outdoor advertising media, which have led to the Company to announce its intention to raise equity stake in Master Ad PCL from 24.96% to 37.42% and make offers to buy all the remaining shares in order to speed up the efforts to penetrate the outdoor advertising market.
VGI also seek to increase its presence in the online/offline digital advertising media market and set up the activation team tasked with organising the marketing activities directed at the consumers, including sampling, demonstration and spot redemption and raffle scheme, to enhance VGI's capacity to respond to all market demands and more diverse consumer behaviours.
After the consolidation with MACO, it is expected to bring revenue growth more than 50% as the result of the nation-wide coverage to cater for growing demand for OHM advertising. Additionally, VGI can also develop new media channels to better serve clients' demand.
Contact:VGI Global Media PCL
Investor Relations Department
Tel: +66 2273 8636; +66 2273 8639
E-mail: ir@vgi.co.th
Released for VGI Global Media PCL
by MT Multimedia Co Ltd
Orn-arong ("Fah") Pattaravejkul
Tel: +66 2612 2081 #129
Mobile: +66 8 6884 4458
E-mail : ornanong.p@mtmultimedia.com
Source: VGI Global Media PCL
Sectors: Daily Finance
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