MACO reported the first quarter performance of 2021/22, being successful from the business negotiation both domestic and overseas, resulting in the gradual recovery YoY at the total revenue of THB 603mn, grew 17.9% and reversed to record the net profit at THB 94mn.
 


 
Mr. Phoon Chong Kit, CEO of Master Ad Public Company Limited or MACO, one of the leader of outdoor media with variety of both billboards and digital media covering all over Thailand and in ASEAN regions said that “The overall operation of MACO during the economic pressure from the uncertainty of the COVID-19 pandemic in this quarter was regarded as satisfactory enabling the commercial negotiation conditions both domestic and overseas to be in positive direction successfully. Consequently in 1Q 2021/22, the Company had the positive performance YoY divided into the revenue from Advertising business at THB 201mn, increasing 39.3% YoY represented 33.3% of the total revenue, which derived from Domestic Advertising revenue at THB 170m, increasing 75.5% YoY, resulting from the quarterly recognition of the minimum guarantee from Plan B Media Public Company Limited (“PlanB”) and International Advertising revenue at THB 30mn, decreasing  35.7% YoY from the COVID-19 crisis. For revenue of System Integration business, increasing 9.5% YoY, represented 66.7% of the total revenue or THB 402mn as a result of more revenue recognition from project managements. In this quarter, the Company’s cost of sales reduced from the end of concession agreement of the advertising media in Malaysian Airport, recorded at THB 437mn decreased 3.6% YoY, which is the main factor of the increase in gross profit margin to 27.6% from 11.4% YoY. Furthermore, other income was at THB 200mn from the reversal of the concession fee of the Malaysian Airport at the amount of THB 183mn while such irregular income resulting from the success of negotiation with the Malaysian Airport to reduce the concession fee for 2020/21. For the directions of operation and important development of the Group, VGI MACO (Singapore) Private Limited and Trans.Ad Solution Co., Ltd. invested additional investment in Vietnam completely.  Because of this success, MACO can fully operate strategically both in the Advertising and the System Integration businesses through the operation of VGI Vietnam Joint Stock Company and Transad Viet nam Joint Stock Company. Moreover, this strengthen the Company to grow potentially in the advertising industry which is regarded as the major route to pave the way to be the leader of OOH in Vietnam in accordance to the planned direction as well.

 


 
Even though all over the world have been vaccinated for COVID-19, but the pandemic crisis is still getting more severe consecutively, shaping uncertainty in every region especially in ASEAN, our main market.  However, MACO has still insisted in the business operation guidelines in order to build up sustainable growth and the utmost benefit to the Company’s shareholders as be seen though the successful overseas business negotiation mentioned above. Furthermore, the joint agreement between the Company and PlanB for the full-year minimum guarantee to be paid in advance can be seen that the agreement is better off for the domestic operation of the Company during the economic recession like this.     

For the financial stability, the Company is operating continually under the cost management and efficient liquidity to strengthen of cash flow and increase the capacity to generate profit in order to being ready to cope with the pandemic of COVID-19. Finally, we have learned the valuable lessons from such crisis and by the efficiency in management and operation among the recession situation, we have confidence that we can lead the Company though this difficult time and becomes strongly growing once again when the market turns to be normal situation.” CEO added.