VGI ups target on robust projections

The company is also utilising some of the proceeds from last year’s initial public offering to commence installation of platform-screen doors on the Skytrain system. This programme serves safety purposes as well as generating additional revenue.
Installation of screen doors is now complete at Siam Station, while work is in progress for similar installations at Asok, Chit Lom and Sala Daeng stations. VGI chief executive officer Marut Arthakaivalvatee yesterday said the annual operating results for the company’s 2012-13 financial year, which runs from April 1, 2012, to through this coming Sunday, were on course for targeted growth of 40 per cent.
Revenue in the first nine months was already Bt2.16 billion, and net profit was reported at Bt684 million.
The strong growth was from the company’s three main revenue-generating media segments, as well as the result of aggressive marketing plans.
VGI has adjusted the 2013-14 fiscal year target to 30-per-cent growth. Modern-trade media is expected to account for 40 per cent of income, with
 mass-transit media and office buildings/other media each contributing 20 per cent, he said.
The company has completed the first phase of the ongoing project to install screen doors at Siam station by utilising funds raised from the successful IPO in October last year, he added.
It has spent about Bt113 million, of which Bt80 million was for the doors and digital media on the doors at Siam Station, as well as at Asok, Chit Lom and Sala Daeng.
The safety of BTS passengers is a top priority, which is why VGI has started installation in crowded stations in the central business district first. At the same time, it will generate revenue of about Bt36 million annually from digital advertising screens adjacent to the new doors, Marut said.
VGI has also commenced two other projects. One is investment in the digital-media network system and static media in BTS-related media and modern-trade media, which required about Bt22 million, and the other project is a Bt10-million investment in enterprise-system software management and improvement in the IT network to support future business expansion.
Meanwhile, VGI’s robust growth corresponds with Thailand’s thriving advertising industry, which is predicted to grow by 10 per cent this year to about Bt140 billion.
Compared to the total industry last year, the segments in which VGI is a dominant player are still relatively small – 2.5 per cent of the market for mass-transit media, worth about Bt2.96 billion, and 2.3 per cent for modern-trade media, worth about Bt2.73 billion – and therefore offer huge growth potential, said the CEO.