|
VGI Global Media (SET: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
BANGKOK, Aug 04, 2016 - (ACN Newswire) - VGI Global Media PCL (SET: VGI), Thailand's 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 Master Ad PCL (SET: MACO) acquisition. MACO declared its takeover of the business of Multi Sign Co., Ltd, 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, 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.
Contact:VGI Global Media PCL
Investor Relations Department
Tel: +66 2273 8639; +66 2273 8623
E-mail: ir@vgi.co.th
Released for VGI Global Media PCL
by Public Relations Department,
MasterMind Communications Co Ltd
Orn-arong ("Fah") Pattaravejkul
Tel: +66 2612 2081 #129
Mobile: +66 8 6884 4458
E-mail: orn_tabo@hotmail.com
Source: VGI Global Media PCL
Sectors: Daily Finance, Broadcast, Film & Sat
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network. |