By The Nation
In the 2019-2020 financial year, the company’s recurring net profit hit an all-time high, rising by 47 per cent year on year to Bt4.8 billion largely due to improved mass transit systems, media and property businesses and a high share of profits earned by its associates.
Total revenue stood at Bt42.2 billion, with mass transit business being the largest contributor. The media side of the business also posted remarkably strong financial results with an all-time high net profit of Bt1.4 billion, marking a 29 per cent increase year on year.
The expansion of BTS Group’s rail mass transit expansion is continuing to make significant progress on all lines, especially the Green Line, which should see a trial opening of four additional stations up to Wat Phra Si Mahathat station within this month and the rest by the end of the year.
The company also expects to see significant progress in its other transportation projects, namely the U-Tapao International Airport link and intercity motorways, the contracts for which should be signed within this month and next respectively.
In terms of media business, VGI Public Co Ltd (VGI) – an offline-to-online business solutions provider – earned Bt4 billion in total revenue, growing 11 per cent year on year and posted a record-breaking net profit of Bt1.4 billion, up from Bt1.1 billion in the previous year.
VGI Digital Lab, a new online agency business unit which was created to become a data-driven digital marketing arm of VGI, was able to deliver a strong performance, exceeding its first-year revenue target of Bt150 million. Also, from the last quarter of 2019, VGI deconsolidated MACO Public Co Ltd (MACO) and sold its stake to PlanB Public Co Ltd (PlanB), which helped bolster VGI’s profit margin to 35.6 per cent.
“The excellent financial results, especially in the face of uncertainties surrounding the Covid-19 outbreak, illustrates BTS Group’s strong business fundamentals, diversified business portfolio and revenue profile, as well as our ability to navigate a challenging economic environment. Though next year will weigh down financial performance and pose significant challenges as the world continues adjusting to the ‘new normal’, we believe it will be an exciting year for BTS Group, with various upcoming projects in our pipeline including the U-Tapao International Airport and intercity motorway projects. In addition, we continue to explore other long-term partnerships across various sectors to synergise and add value to our existing businesses,” Kavin Kanjanapas, BTS Group’s CEO, said.
BTS Group prides itself on upholding environmental, social and governance frameworks and has been recognised for its commitment to sustainability by several leading institutions across the world. The most notable were recognition from the Dow Jones Sustainability Index and the Thailand Sustainability Investment Index in 2019. BTS Group also won the Asset Triple A Sustainable Capital Markets Regional Awards 2019 under the category “Best Green Bond” deal in the transportation and infrastructure sector and received the “RobecoSAM’s Silver Class distinction” in the Sustainability Yearbook 2020.