Link with BTS unit to drive strong growth this year, MACO boss says
Master Ad (MACO) targets strong growth this year after VGI Global Media, a transit-media provider and a unit of BTS Group, acquired a 24.43-per-cent equity stake in the company.
This will help MACO become a full-service provider of out-of-home media, expanding from transit and in-store media to outdoor services, said its executive chairman, Noppadol Tansalarak.
MACO has signed a contract with BTS, the operator of Bangkok’s Skytrain, to extend its concession for advertising lease space by 16 years. This includes the addition of 40 digital advertising signboards at 21 Skytrain stations to be completed and available for leasing by the end of this year. MACO will also retain its advertising concession on Skytrain stanchions on existing routes as well as future extensions. The company hopes advertising revenue from BTS stanchions will exceed Bt200 million after this year.
This business partnership between MACO and VGI will allow them to exchange their client databases for mutual gain, while investors in both should also benefit from the business alliance, he said.
In addition, the joint venture with VGI boosted MACO’s first-quarter revenue to Bt173.76 million, up 9.67 per cent over the same period last year, while net profit was Bt44.25 million, up 24.43 per cent. This was attributed to MACO’s ability to maintain its advertising-space occupancy rate at 70 per cent, allowing it to keep costs at a suitable level to ensure profit margin of at least 50 per cent.
