VGI Public Company Limited (SET: VGI), leader in Offline-to-Online (“O2O”) marketing solutions provider via various platforms, reported operating performance of 2Q 2024/25 with services and sales revenue of THB 1,341mn, increasing by 23.7% YoY. This growth in revenue was driven by the expansion across all business sectors, including Advertising, Digital services and Distribution.
Advertising business revenue increased by all media types, with utilisation rate of 52.1% compared to 43.8% in the same period last year. Digital services revenue increased mainly from RCash having higher outstanding loan and RCare having higher revenue from commission earned from sales of insurance and financial products. Distribution revenue increased from Super Turtle Public Company Limited expanding the number of shops.
The Company has improved its profitability from the advertising business that can generate continuous profits. In addition, the Digital service business has significantly reduced losses thanks to better cost control. Meanwhile, the Distribution business has a lower net loss margin thanks to the expansion of TURTLE shops, resulting in economies of scale and increased efficiency in cost management. In addition, the Company has recognised profits from joint ventures and associates. As a result, the Company reported a net profit of THB 78mn.
For the first half of 2024/25, the Company reported revenue of THB 2,545mn, increasing by 15.3%, and turned around to have a net profit of THB 141mn from the first half of 2023/24, mainly thanks to no share of loss from Kerry Express (Thailand) Public Company Limited after the sale of investment in Kerry in March 2024.
Thai economy of 2024 is expected to expand 2.7%, compared to 1.9% in 2023, supported by various factors favorable to business environment, resulting in an increase in money circulation in the economy. This should result in businesses having more advertising budget, potentially benefiting VGI’s advertising and entertainment business.
In addition, the Extraordinary general meeting of shareholders no. 1/2024 held on 15 October 2024 resolved to approve the sale of ROCTEC to BTS Group holdings Public Company Limited. VGI completed the sale and received net cash proceeds of THB 2,191.2mn. Moreover, the EGM has approved the company’s capital increase of THB 13,208.2mn via private placement (PP), which is expected to be completed by 2024. After the completion of both transactions, the Company will receive total additional cash of THB 15,399.4mn, which will strengthen the Company’s financial position and prepare the Company to be able to invest in the Virtual bank business, expand its existing businesses, and support business opportunities and investment in related businesses to enhance its competitiveness and create sustainable growth in the future.
