VGI boosts revenue 30% despite slump in media spending
May 18, 2017 19:12 By The Nation
VGI, operator of a data-centric media hypermarket, announced its operating results for 2016-17, with a 30 per cent year-on-year rise in revenue despite shrinking media spending.
It attributed the success to the healthy growth in the OOH segment and the recognition of revenue from the acquisition of Rabbit Group companies. In view of a forecasted improvement in media spending this year, its management seeks to grow the revenue for 2017-18 to Bt4 billion.
Marut Arthakaivalvatee, vice chairman of VGI Global Media PCL (VGI), said revenue of Bt3.05 billion was an increase 30 per cent from Bt2.34 billion, despite lower media spending in the market during the year.
The growth was driven by the expansion in out-of-home (OOH) media segment covering BTS, Office, Outdoor, Aviation and Activation. Furthermore, VGI recognised revenue from Rabbit Group (BSS and BSSH) and has already benefitted from the synergies after an acquisition.
Net profit decreased from last year to Bt826 million, mainly due to the suspension of advertising media services during the national mourning period and one-time rise in selling, general and administrative expenses (SG&A).
“Amid low media spending over the past year, we managed to record solid growths in revenue across our one-stop Out of Home media platform. We also earned more revenue following the acquisition of MACO and Rabbit Group to enhance our strengths as well as our future performances”, he said.
The company’s board approved on May 16 the payment of cash dividends for the second half-year results to the shareholders at Bt0.025 per share, or Bt172 million in aggregate.