VGI investing in LED screens, raises target

Chief executive officer Marut Arthakaivalvatee said that of the Bt540 million, about Bt260 million would be for bigger multimedia screens at BTS Skytrain stations that will start using them on October 1. Another Bt160 million will be used for advertisements on platform screen doors and other placements. The investment comes from the company’s cash. As of March 31, the company recorded cash on hand of Bt1.25 billion. 

“This year is expected to see a bright picture for advertising media. The Advertising Association of Thailand expects the advertising media to grow more than 10 per cent to Bt140 billion in 2013,” he said. 

For the company’s modern-trade advertising media, there remains room for development. It will add teams to take care of areas for advertising media at more than 300 branches of Tesco Lotus and Big C across the country.

This year, VGI Global Media aims to have 46 per cent of total usage area as advertising in modern-trade facilities, up from last year’s 40 per cent.

Its revenue from advertisement in modern trade is expected to grow 40 per cent, given more areas for development.

Its advertising media in office buildings are likely to grow with its contracted advertisements in 63 buildings. Now, it acts as the sole representative for sales of advertising media on the Airport Link.

Because of expected broader access to multimedia by customers, satisfactory growth in the media industry and its new package prices, VGI Global Media raised its fiscal 2014 revenue-growth target to 30 per cent.

In its fiscal year 2013 ending this March, it saw revenue of Bt2.87 billion, up 43 per cent from the previous fiscal year, while its net profit stood at Bt908 million, up 226 per cent.

Krungsri Securities’s research has also raised its forecast for VGI Global Media’s net profit for fiscal 2014 by 4 per cent to Bt1.39 billion, given the company’s more proactive business-expansion plan.