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|– Splitting PAR to boost its trading liquidity
– Maintain annual growth of 30% in spite of ad industry down-trend
|Bangkok, Aug 5, 2013 – (ACN Newswire) – VGI reported its first quarter result of 2013/14 (Apr – Jun), earned THB 861 million, increasing 32% YoY. Bottom line rose by 92% to THB 308 million as a result of the increase in BTS’s 35 C-Cars and extension line which grew inline with growth in BTS’s ridership, as well as branch expansion of Modern Trade retailers. VGI believes its performance grew against main the stream, which showed only a 1% growth YoY in total ads spending during the first half of the year the surge of its performance was due to the ability to reach the target group more than other media. The management is cautions on the uncertainty of the global economy and domestic political situation but still maintain the top-line target growth of 30% this year.
Mrs. Suparanan Tanviruch, CFO of VGI Global Media Public Company Limited (“VGI”), the leading in lifestyle media network provider, disclosed the Company’s performance for 1Q 2013/14 (Apr – Jun). The Company had total revenue of THB 861 million, an increase of THB 208 million or 32% YoY from THB 654 million. Net profit for this quarter was THB 308 million and reported the EPS of THB 0.93 per share. The CFO further revealed that on 30 Jul 2013, the Board of Director resolved to approve the change in par value of shares from THB 1.0 to THB 0.10 (ten Satang) per share, which will result in the increasing in the number of shares from 330 million shares to 3,300 million shares in order to improve trading liquidity. The Company has called for an Extraordinary General Meeting in September to get approval in this matter.
The Company’s revenue growth was driven by an increase in sales across its all business segments, including BTS-related media, Modern Trade media and Office Building and other media. BTS-related media in particular had revenue of THB 415 million, an increase of THB 107 million or 35% YoY, while generating higher profit margins than the Company’s other business segments. The growth in BTS-related Media in this quarter was driven by the completion of BTSC’s capacity expansion programme as all regular-service trains on Sukhumwit line have been extended to 4 cars long (extended from 153 to 188 carriages), as well as from the increasing in advertising spaces in non-prime stations. Modern Trade media, Office building and other media grew from the higher sales of existing media under management.
Mr. Marut Arthakaivalvatee, Chief Executive Officer, quoted that overall ads spending dropped during VGI’s first quarter of 2013/14 (Apr – Jun). Research from the Nielsen Company showed a drop of 2% in May’s total ads spending before it rebounded to 1% increase in June. This resulting in a drop of the first-half ads spending to THB 55,601 million, or only 1% increase YoY. In spite of the ads industry’s down-trend, the management believes that the Company will maintain is growth momentum as its lifestyle media, both, in BTS and Modern Trade, had explicit target groups, which located in high traffic locations that served the out-of-home modern lifestyle. Moreover, lifestyle media has innovative and interesting displays which easily drawn an attention from audiences more than other media, an of which created its own popularity amongst advertisers.
“The new trend of using lifestyle media, such as the mass transit media and in-store media, is still growing. Clients have used our media networks and it’s proven that our media is highly effective for brand-building and sales boosting. Our networks have relatively definite and visible target group. Apart from the growth by an ever increasing in popularity of the media, the increase in advertising spaces became another source of growth, such as train capacity increase, BTS expansion line, or Modern Trade branches expansion. VGI’s strategy is to never stop looking for new opportunities and new media spaces. Recently, we’ve just acquired a media management contract with another 11 buildings, which have made a total of 62 buildings under VGI’s management. Moreover, the Company has replaced some of static media on platform into digital media in order to increase the capacity as the demand is increasing. VGI’s growth is resulting from the combination of factors above,” Mr. Marut said.
The CEO of VGI also added that, media business generally grows inline with macro economy’s growth. The recent announcement from the Bank of Thailand regarding the reduction in 2013’s target GDP from 5.1% to 4.2% may have a negative impact on the media industry. The Company is cautious and conservative on the effect which may follow in the second-half of the year, and keeping a close eye on the issue in order to encounter a minimal impact as least as possible.
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.
About VGI Global Media PCL
VGI Global Media PLC (SET: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. For more information, please seewww.vgi.co.th.
Investor Relations Department
VGI Global Media Public Company Limited
Tel. +66 2273 8611 ext. 1528, 1529
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