VGI plans revenue spike through OOH

SET-listed VGI Global Media Plc, a provider of media space on the skytrain system, forecasts revenue to rise to 4 billion baht this fiscal year starting on April 1, thanks to the healthy growth of the out-of-home (OOH) media segment and realised revenue from the Rabbit Group companies it acquired last year.

VGI vice-chairman Marut Arthakaivalvatee said he is optimistic about the company’s prospects despite low ad spending on all media. Last year, total ad spending fell nearly 12%.

“Amid low media spending since last year, we managed to record solid revenue growth from our one-stop OOH media service network,” he said. “We also earned more revenue following the acquisition of Master Ad, Multi Sign and Rabbit Card, which will enhance our future performances.”

The three acquisitions have strengthened VGI’s OOH media service and coverage nationwide. Master Ad offers outdoor billboards and LED screens along highways and gateways, while Multi Sign Co is a major OOH media provider in provinces, with coverage at 862 billboards nationwide.

Rabbit Card lets VGI enter the e-payment segment. VGI also acquired an e-wallet business through Rabbit Line Pay, a function embedded in the popular instant messaging app Line, which boasts 33 million users.

In the future, VGI will allow Rabbit Card users to buy products and pay skytrain fares online.

VGI reported 3.05 billion baht revenue in fiscal 2016 ending Mar 31, 2017, up 30% from 2.34 billion baht in fiscal 2015. Net profit was 826 million baht in fiscal 2016, down from 940 million baht in fiscal 2015.

Mr Marut voiced confidence that VGI would successfully achieve the 4-billion-baht revenue target and sustain growth in fiscal 2017.

Of the revenue projection, 50% will come from advertising on the skytrain network, 25% from OOH advertising, 15% from Rabbit business and the balance from advertising space at office buildings.

On May 16, VGI’s board approved payment of cash dividends to shareholders based on second-half performance of fiscal 2016 of 0.025 baht per share, or 172 million baht in total.

VGI shares closed yesterday on the Stock Exchange of Thailand at 5.10 baht, up 16 satang, in trade worth 69.2 million baht.