VGI Announces Q3 2023/24 Results, Recording THB 1,330mn in Total Revenue, a 3.1% Decline YoY

VGI PLC or VGI, the leader of Offline-to-Online (“O2O”) Marketing Solutions across multiple platforms, discloses its operating results for Q3 2023/24, reporting a total revenue of THB 1,331mn from services and sales, a 3.1% decline YoY, primarily due to income loss from Fanslink. Nonetheless, the Company’s transit media and digital services, as well as retail business under TURTLE, continued to flourish and remained robust compared to the same period in the previous year.

Commenting on the results, Nelson Leung, CEO of VGI, said, “In Q3 2023/24, our Advertising segment still garnered positive responses from brands, generating revenue of THB 610mn, a marginal decrease of 1.4% YoY. Meanwhile, we have continued to expand our BTS Street View media network in strategic locations. On the other hand, our Digital Services segment grew by 13.5% YoY, generating a total revenue of THB 426mn. This growth was driven by increased revenue from our digital lending business under RCash, as well as increased online media revenue. As for the Rabbit Group, the current tally of Rabbit Cards issued has reached 17.4mn. Additionally, we have recently launched the “Ride anywhere for 25 baht throughout the line” campaign for both adults and students on the Yellow Line, and we anticipate a rise in Rabbit Card numbers due to this promotion. However, our Distribution segment saw its revenue drop by 22.3% YoY to THB 295mn. This was mainly owed to Fanslink’s strategic shift to focus on selling high-margin products from its own brands such as Pando, EZ Home and WANAA. Nevertheless, this decline was offset by the revenue increase from our retail business under TURTLE, which currently has 20 Turtle shops on the BTS stations. Recognising TURTLE’s growth potential, we have increased our stake in TURTLE to 73.3%. We believe that this investment will not only propel our income growth but also contribute to enhancing our overall performance in the future.”

“Finally, given the aforementioned situation that has negatively impacted our overall operating results and retained profits, we have made the decision to suspend the payment of interim dividends. However, VGI is cognizant of the adverse circumstances and has implemented strategic actions to improve our performance. Now, we believe that the most challenging period has passed, allowing us to anticipate our profit trends to take a more favourable turn. Most importantly, our cash position remains robust, which we are confident will support our recovery in the near future,” the CEO added.