VGI Reports Q2 2023/24 Results, Recording THB 1,083mn in Revenue and THB 166mn Net Profit

VGI PLC or “VGI”, the leader of Offline-to-Online (“O2O”) Solutions across multiple platforms, announced its Q2 2023/24 results, reporting a total revenue of THB 1,083mn from services and sales, with a net profit of THB 166mn. This notable performance was driven primarily by the sale of investments in Rabbit LINE Pay Company Limited.

In response to this latest performance, Nelson Leung, CEO of VGI, commented “The past 6 months was a challenging time. Nevertheless, we have once again demonstrated our operational strength in overcoming difficulties. Our Advertising revenue rose by 8.0% YoY, reaching THB 471mn. In the past quarter, VGI also collaborated with Super Turtle Public Company Limited (“TURTLE”) in launching a new media package called ‘TURTLE LED.’ This package includes 59 large digital advertising screens installed in front of the Turtle stores across 15 BTS stations.”

“Meanwhile, revenue from our Digital Services segment declined by 2.5% YoY to THB 350mn due to loss of Lead Generation income from Rabbit Care Company Limited (“RCare”). However, Rabbit Group continues to see constant development, with the number of Rabbit Cards presently reaching 16.9mn. Likewise, our Insurance brokerage business under RCare Group has successfully acquired the insurance brokerage business of EasyCompare (Thailand) Company Limited (“EasyCompare”). This strategic move is expected to provide RCare with access to an active customer base of more than 30,000 users and 400,000 potential users. Moreover, RCare has begun to expand into the Vietnamese and Singaporean markets through the establishment of two new subsidiary companies under the names Rabbit Care Vietnam Limited Liability Company and Rabbit Care (Singapore) Pte. Ltd. These new subsidiaries will replicate RCare’s business model in Thailand, providing online insurance and financial product comparison services to new customers.”

“As for our Distribution segment, there was a 40.5% YoY decline in revenue to THB 242mn as a result of the shift in the proportion of product sales of Fanslink, which prioritized higher margin products. This loss was, however, partially offset by the augmented revenue from TURTLE retail business. At the same time, we recorded other income of THB 583mn in this quarter, representing a significant 94.6% YoY increase, from the recognition of profits from the sales of investments in Rabbit LINE Pay Company Limited.”

“Finally, amidst economic uncertainty, the World Bank has revised down its economic growth projection, leading the Bank of Thailand to adjust its growth forecast for 2023 down to 2.8%. Accordingly, VGI has revised our full-year revenue target down to a range of THB 5,000 to 5,500mn. Nevertheless, we are confident that with our robust financial standing and capability of our personnel, all our business segments will rebound. We are also poised to capitalise on the opportunities presented by the launch of the BTS Yellow and Pink lines, which is expected to propel the continuous growth of ventures under VGI’s ecosystem,” the CEO added.