VGI Announces 2023/24 Results, Recording THB 4,813mn in Total Revenue,a 1.2% Decline YoY

VGI PLC or VGI, the leader of Offline-to-Online (“O2O”) Solutions across multiple platforms, announced its operating results for 2023/24, reporting a slight decline in total revenue from the previous year to THB 4,813mn, with the Advertising and Digital segments recording income growth of 8.7% and 8.5% YoY, respectively, while the Distribution segment saw its revenue drop by 23.1% YoY. Accordingly, the Company’s 2023/24 operating results showed a net loss of THB 3,489mn. This was primarily due to the share of losses from joint ventures and associated companies, including losses from the sale of investments in Kerry Express (Thailand) Public Company Limited (“KEX”) and the impairment of investments in Jaymart Group Holdings Public Company Limited (“JMart”) as well as other associated companies.

Commenting on the 2023/24 operating results, Mr. Nelson Leung, CEO of VGI, said, “Despite incurring losses from non-recurring items due to the operating loss of KEX and a lower profit share from JMart, the Advertising segment, which is our main focus, continued to show a positive growth trend, recording an 8.7% increase in profits YoY to THB 2,105mn, thanks to higher usage rates across all types of media. We have also expanded our advertising media space to the Yellow Line and Pink Line rail networks, leading to increased advertising space on 72 trains. Moreover, we have launched a new media package called ‘EXIT package LED’ for media in front of Turtle stores, enhancing visibility to convenience store customers. Additionally, new street furniture media have been introduced at St. Louis and Ploen Chit BTS stations, adding 28 digital screens and light boxes.”

“In the Digital segment, we have sold our entire stake in Rabbit Line Pay Company Ltd. due to intense competition in the electronic payment market, while continuing to promote the use of Rabbit Cards through various promotions and special privileges with retailers. As a result, the total number of Rabbit Cards activated grew by 9.6% from 16.2mn in the previous year to 17.8mn. Furthermore, in 2023/24, RCare sold a total of 200,330 insurance policies with total premiums of THB 2,805mn, marking a 12.7% increase YoY. We also expanded RCare into the Vietnam and Singapore markets by leveraging the successful business model used in Thailand for online insurance and financial product comparison services. Meanwhile, RCash reported a total loan amount of THB 731mn, an impressive increase of 558% from the previous year. As for our Distribution segment, Turtle now operates 22 branches on 20 BTS stations along with 7 SuperRich Turtle stores on BTS stations.”

“Finally, for our operational strategy in 2024/25, we will focus on maximizing the potential of our existing joint ventures rather than pursuing new business opportunities. We have earmarked a THB 1,000mn budget for this effort, where 50%, 20%, and 30% will be directed towards our Advertising, Digital and Distribution segments, respectively. Overall, we anticipate revenue growth in 2024/25, driven by heightened demands for our products and services amidst favourable economic climate. As such, we have set a revenue target ranging from THB 6,000mn to THB 6,500mn for the upcoming year,” added the CEO.