VGI Announces 1Q21 Results, Defying the Odds with 33.7% Growth YoY

VGI Public Company Limited (VGI), the market leader in Offline-to-Online (O2O) Solutions across Advertising, Payment and Logistics platforms announced its 1Q 2021/22 performance, delivering solid revenue growth of 33.7% YoY and positive net profit of THB 10 million despite COVID-19 challenges. This is a result of the group’s ability to effectively adapt to the situation and measures put in place to mitigate the impact of the pandemic and prepare for future crises.

Commenting on this achievement, Mr. Nelson Leung, CEO of VGI, said, “Notwithstanding the challenges of COVID-19, the Group was able to maintain operational efficiency and record 33.7% revenue increase to THB 596 million and 109.7% net profit increase to THB 10 million compared to the same quarter last year. During this quarter, we managed to bring in THB 378 million from our Out-of-Home (OOH) segment, an increase of 41.9% YoY from THB 266 million, and THB 218 million from Digital Services, an increase of 21.6% YoY.”

“For our key business highlights and management outlook, in the OOH Advertising segment, despite being heavily affected by the pandemic, we were able to amplify our marketing effectiveness through consumer engagement, utilizing all of our media platforms. In the Payment segment, we were able to expand our digital and online services under the Rabbit Group, with Rabbit LinePay teaming up with KBank to launch LINE POINTS Credit Card in response to the new normal spending. In this quarter, we also further strengthened our ecosystem through a new investment in e-Commerce by investing a 51.0% equity stake into Fanslink Communication Co. Ltd. (Fanslink), a leading importer of Chinese electronics and e-Commerce enabler. This alliance does not only offer a major opportunity for both businesses to expand our capabilities moving forward, but also broaden VGI’s ability to add value to our products and services through the consolidation of Fanslink’s premium products and VGI’s ecosystem.”

“Although there is encouraging progress this year with the vaccine rollout across the globe, the situation in Thailand remains volatile given the surge in infection cases and deaths since April, leading to stricter containment measures, and inevitably the sluggish pace of recovery. The Bank of Thailand has cut Thailand’s economic growth forecast in 2021 to 0.7%, the lowest in ASEAN. Nevertheless, VGI will focus on pursuing operational sustainability through our diversified platforms and creation of new synergies, while also maintaining a strong balance sheet and cash reserves. With that, we are confident we will be able to quickly pick up the pace and continue to create a thriving business once the pandemic comes to an end,” Mr. Leung concluded.