VGI Public Company Limited (SET: VGI), the market leader in Offline-to-Online (O2O) Solutions across multiple platforms announced its 3Q 2021/22 performance, delivering strong results despite challenging circumstances, recording THB1,429 million revenue, a 110% increase YoY, thanks to the consolidation of Fanslink Communication Co. Ltd. (Fanslink) and growth of Rabbit Group.
Commenting on this achievement, Nelson Leung, CEO of VGI, said, “The previous quarter marked a very challenging period for VGI. Although we had started to see a gradual improvement in our revenue, our overall performance continued to reel from the effects of Covid-19, especially our Out-of-Home (OOH) segment. While we managed to maintain operational efficiency and recorded net income of THB1,429 million, an increase of 110% YoY, we saw net loss of THB76 million, mainly due to recognition of loss from our partners and subsidiaries. During this quarter, our OOH segment’s revenue declined by 5% YoY to THB436 million, while its quarter-on-quarter results witnessed an encouraging sign of 48% growth. Meanwhile, our Digital Services segment brought home THB312 million net revenue, a 41% growth YoY, thanks to income from insurance commissions and expanded sale opportunities. Moreover, we made THB681 million in revenue from our distribution business.”
“As regard our Payment segment, we continued to expand our digital and online services under the Rabbit Group, the leader in digital solutions. To date, Rabbit LinePay has over 9.3 million users, and over 14.8 million Rabbit Cards issued, an increase of 16.1% and 6.0% YoY, respectively. Similarly, our Distribution business saw constant development, with the launch of the Rabbit Selection app, operated by Fanslink under the concept “Good life is not expensive”, which adopts the latest technology to facilitate seamless connection between consumers and quality products from all over the world at affordable prices through offline and online channels.”
“While the COVID-19 situation in Thailand has been taking a more positive turn, with the national vaccination rate reaching 74.9%, leading the population to resume relatively normal daily activities, the arrival of the highly infectious Omicron COVID-19 variant has left the country grappling with an uncertain reality. Yet, the latest outbreak is expected to have less impact on the Thai economy than the previous waves, given the relatively milder symptoms of the variant and the Government’s ability to better handle the situation. At the same time, the Government also plans to declare Covid-19 an endemic by the end of 2022. Therefore, it is anticipated that the Thai economy will see an uptick compared to the previous year, with the Bank of Thailand (BOT) projecting 3.4% growth in 2022.”
“With the gradual recovery of the Thai economy – despite not matching its pre-pandemic level – combined with our strategic investment in Jay Mart Public Company Limited to expand our ecosystem, VGI has a total loan portfolio of THB 8,200mn. In response, our Board of Directors has approved the issuance of rights offering (RO) to existing shareholders, along with issuance of warrants (VGI-W3), with the aim to use the proceeds to pay off loans, increase financial liquidity and for future investment in new businesses. With the Group’s solid financial status and liquidity, we firmly believe VGI will be able to achieve vigorous and sustainable growth and deliver greatest benefits to all stakeholders once the situation returns to normal.”
“Lastly, our Board of Directors has approved the payment of cash dividend from the operating results of 2H 2021/22 to existing shareholders as of 28 February 2022 at THB0.02 per share, coming to a total of THB172 million. The interim dividends will be paid on 14 March 2022,” Mr. Leung added.
