- Announces Ad Rights Deal for 0.2 Million Sq.m. Chamchuri Square
BANGKOK, Feb 3, 2015 - (ACN Newswire) - VGI Global Media PCL (SET:VGI) reported its Q3 2014/15 (Oct to Dec'14) operating results, including a 0.7% decline in operating revenue to THB 789.4 million, while a 13.8% rise in net profit to THB 300.8 million, amid the advertising media market slump. The firm pointed out the decision to invest in MACO, which proved to be a highly successful deal.
The Company detailed its new projects, including the management of media at the 0.2 million sq m area of Chamchuri Square office tower, residential and shopping complex, and agency advertising for four LED screens around the Victory Monument. The shareholders will receive year-half dividends on 30 Jan at THB 0.14 per share.
Mrs Suparanan Tanviruch, Chief Financial Officer of VGI, Thailand's leading provider of lifestyle media solutions, said that over the third quarter (Oct to Dec'14) advertising expenditure in the FMCG (or Fast Moving Consumer Goods) segment, which represented 40% of the advertising industry's sources of advertising revenue, contracted 5.9% quarter-on-quarter, or 7.2% year-on-year. The advertising industry's figure was also 0.04% lower quarter-on-quarter, or 9.0% lower year-on-year, she added. For the same quarter, VGI recorded operating revenue at THB 789.4 million, a 0.7% decline quarter-on-quarter, slightly lower than the industry's average. The firm recorded a net profit of THB 300.8 million, a 13.8% rise quarter-on-quarter, as well as a special gain of THB 53.2 million from the selling of MACO-W1. VGI's lower operating revenue was caused mainly by a quarter-on-quarter decrease in adverting revenue from the modern-trade segment by 18.9% to THB 30.5million. The decrease was in turn caused by the fact that the firm's advertising media management agreement in connection with Tesco Lotus' sales floors was expiring in February and the firm's need to stop marketing the relevant media to avoid impacts on the customers from any discontinuity of the contract term. However, despite the overall decline in the advertising media industry, VGI's sales revenues from the mass transit and the office tower/other segments grew strongly quarter-on-quarter by 10.2% and 13.6%, respectively.
Mr Marut Arthakaivalvatee, Chief Executive Officer of VGI, noted that, because the direction of the advertising media industry is heavily influenced by the economic climate, the industry has been hard hit by the economic doldrums over the past year. VGI's management has handled the situation with great care and worked to diversify its investment in out-of-home media firms, and its MACO deal has proven to be a great corporate move that has added VGI's financial strength significantly, he added.
VGI is relentless in pursuing new investment opportunities and building new lifestyle advertising media projects. Most recently, it has acquired the right to manage advertising media at Chamchuri Square, where more than 270,000 sq m area is available and more than 40,000 people visit daily. At Chamchuri Square, the main advertising media devices include (i) the mega LED screen on the front, which can be watched by commuters in more than 150,000 vehicles per day on Phayathai and Rama IV Road and (ii) the 127 digital and static media inside and outside of the complex. In addition, the firm has become the agency for commercialising four LED advertising screens at the Victory Monument, spanning a 981 sq m area visited by more than 350,000 vehicles per day.
"For our shareholders, VGI declared on 5 January a payment of dividend for the first year-half at THB 0.14 per share, or 92.1% of the net profit recorded for the first two quarters. The dividend payment will be made on 30 January," he said.
About VGI Global Media PCL
VGI Global Media Public Company Limited (SET:VGI) is Thailand's major provider of out-of-home media solutions, having more than 10,000 items of large still-image screens in the BTS skytrain network and large retail stores nationwide. It also has over 11,000 sq.m. of advertising space in the product display zones of large modern trade stores, as well as about 5,000 items of digital screens and media in the BTS platform and train areas, the Tesco Lotus, Big C, and Watson stores, and large office towers throughout Bangkok, and mega LED and outdoor led screens under its management. In addition, the company runs retail shops in 23 BTS stations and radio networks covering nearly 2,000 modern trade stores in Thailand. For more information, please see www.vgi.co.th.
Source: VGI Global Media PCL
Contact:
VGI Global Media PCL Investor Relations Department Tel: +66-2273-8636; +66-2273-8639 E-mail: ir@vgi.co.th MasterMind Communications Co Ltd Orn-arong ("Fah") Pattaravejkul Tel: +66-2612-2081 #129 Mobile: +66-8-6884-4458 E-mail: orn_tabo@hotmail.com
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