Master Ad Public Company Limited or MACO, one of the leaders in Out-of-Home media with diverse media advertising of static and digital media, covering Thailand and the ASEAN region, announced its 2Q 2021/22 operational performance, recording THB 600mn in operating revenue, a surge of 18.3% YoY, as a result of gains from minimum revenue guarantee paid by PlanB and increased system integration revenue.
In this quarter, thanks to minimum guarantee from Plan B Public Company Limited (“PlanB”), MACO’s Advertising business saw a revenue increase of 19.4% YoY, generating THB 214mn, contributing 35.6% of the Company’s total revenue, with THB 203mn coming from its Domestic Advertising segment, an increase of 65.9% YoY, and THB 11mn coming from International Advertising segment, which declined by 81.2% YoY as a result of the COVID-19 pandemic in Malaysia. Meanwhile, the Company’s System Integration business grew by 17.7% YoY to THB 386mn, owing primarily to new project installation, contributing 64.4% to the Company’s overall takings. Meanwhile, the Company’s share of loss from investment in joint ventures and associates declined from THB 53mn during the same quarter last year to THB 17mn in this quarter. This was mainly from none recognition of performance from its investment in PT Avabanindo Pekasa (“Otego”), a transit media business in Malaysia, as the Company had done an impairment of investment in Otego in 4Q 2020/21. Overall, the Company recorded a net profit of THB 50mn in 2Q 2021/22, an increase of 131.3% YoY with a net profit margin of 8.4%.
As regard MACO’s management outlook, given the still volatile COVID-19 situation in Thailand, the recovery rate of OOH media remains slow. Accordingly, the Company has decided to reduce its presence in OOH by selling its domestic billboard assets to PlanB, however, it has continued to retain its ownership of Street Furniture media in Thailand. Moving forward, under its Advertising business, MACO will focus on expanding its Street Furniture advertising, which has a high growth potential, thanks to the expansion of new BTS lines. Moreover, the Company will maintain its media presence in the ASEAN markets, namely in Malaysia, Indonesia and Vietnam while also continuing to strengthen its system integration business. “Our expertise in advertising, coupled with our know-how in system integration technology shall enable us to develop new business opportunities in the future,” said Mr. Phoon Chiong Kit, CEO of MACO.
Furthermore, as part of the Company’s ongoing efforts to diversify its portfolio towards more non-media related businesses, it has constantly sought new business opportunities. Most recently, the Company has invested in Zipmex Asia Pte Limited (“Zipmex”), Asia Pacific’s fastest growing digital assets exchange platform. This investment marks a crucial transformational step for MACO in responding to changes in the global market, be it the trending digital asset market or the worldwide digitalisation trend. Commenting on this, Mr. Phoon Chiong Kit further noted, “We are confident that by adapting ourselves to keep pace with global trends through our investment in Zipmex we will be able to secure new opportunities for growth generation beyond our traditional OOH media business.”
