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- Reflecting stronger client confidence
- Making Forbes Best Companies in Asia Ranking |
BANGKOK, Aug 6, 2014 - (ACN Newswire) - VGI Global Media PCL, or VGI, Thailand's leading provider of lifestyle media solutions, announced its Q1 (April-June) results for 2014/15, highlighting the revenue and net profit figures of THB 762 million and THB 257 million, respectively - a 19% and 33% rise from Q4 due to more advertising spending among clients and greater consumer confidence, which boosted advertising revenue from every media segment.
The company's management forecasts a recovery in the media industry in response to the coming installation of a new government and introduction of full-scale stimulus measures, and is confident the company's revenue growth will hit 13-17% this year.
Mrs Suparanan Tanviruch, Chief Financial Officer of VGI, disclosed the company's results for the first quarter (1 April to 30 June) of 2014/15. She highlighted an operating revenue figure of THB 762 million - which represents an quarter-over-quarter increase by THB 121, or 19%, from THB 641 million, or a year-over-year decrease by 10%, from THB 849 million, as well as a net profit figure of THB 257 million - which represents an quarter-over-quarter increase by THB 64 million, or 33% but decrease by 16% year-over-year.
The quarter-over-quarter improvement in revenue and net profit was contributing by increased in advertising income from all media segments which are BTS-related media, Modern Trade media and Office Building and other media. BTS-related media revenueboosted by the installation of new digital media in the BTS SkyTrain network, such as Platform Truss LED and 23 new 'E-Posters'.
The introduction of new digital media was well received among those customers who are seeking to create brand awareness among BTS commuters. The Modern Trade media recorded a remarkable quarterly growth due to the better consumer confidence and rising demand among FMCG (Fast-Moving Consumer Goods) for using advertising media as their marketing tools. And the expansion of Office Building media network, implemented last year, bore fruits this year.
The decline in year-over-year revenue was attributable to a political deadlock that began in November 2013 and affected advertising spending of all parties. However, VGI sees the political situation as bearing short-term impacts only, as it had improved since May.
"The overall advertising industry enjoyed more cash inflows over the later period of the first quarter," said Mrs Suparanan Tanviruch. "As Thailand's political climate became more favourable, businesses turned to buy media and conduct marketing campaigns to bring back consumer confidence. That helped in supporting satisfactory growth rates in revenue from the advertising media under our management.
"Our accounting year ends in March, which means that we still have three quarters to work on. We believe that advertising expenditure over the remaining three quarters will be greater, as the fact that the negative factors have been largely eliminated will allow us to earn more advertising revenue."
The Media Agency Association of Thailand, or MAAT, predicted a 5% growth rate in advertising expenditure of the industry and a 14% for the mass transit sector, and that an economic recovery would take place in the second half of this year, following an improvement of the situations and the State functioning normally again.
Mr Marut Arthakaivalvatee, VGI's Chief Executive Officer, noted, "My company was recently awarded as one of the best 200 companies in Asia with sales under a billion dollars (Asia's Best Under a Billion). This prestigious award recognized medium to small size company with robust corporate growths in terms of revenue and profit and with outstanding contributions to national economic growths.
"As part of VGI, I feel extremely proud of the company being officially acknowledged as being a small part in contributing to prosperity to the nation. This award will keep us in a cheerful working spirit and strongly determine to accomplish the goal that we have aimed for, just like the name of our company "VGI"; Very Good Indeed."
Contact:
Investor Relations Department
VGI Global Media PCL
Tel: +66-2-273-8639; +66-2-273-8636
E-mail: ir@vgi.co.th
www.vgi.co.th
Topic: Earnings
Source: VGI Global Media PCL
Sectors: Daily Finance, Broadcast, Film & Sat
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From the Asia Corporate News Network
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