MACO announced 2020/21 – encountered the huge impact due to COVID-19, revenue decreased by 27.7%

MACO reported 2020/21 performance with the total revenue of THB 2,064mn, a decrease of 27.7% YoY whereas the revenue from Advertising business decreased by 52.6% YoY and revenue from System Integration services decreased by 5.0% YoY due to the crisis of COVID-19 pandemic which renders the severe world economic crisis and still getting worse even though there is the distribution of vaccination, especially the outdoor media which is the major business of the Company. Consequently, such crisis affected MACO to recognised net loss excluding non-recurring expenses at THB 517mn.      

Mr. Phoon Chong Kit, CEO of Master Ad Public Company Limited or MACO, one of the leaders of outdoor media with variety of static billboard and digital media covering all over Thailand and in ASEAN region stated that "the past year, the world encountered the pandemic of COVID-19 which vastly affected the business sector and the economic growth.  Such crisis has great impact to the business operation of MACO and led the Company to face with great difficulty from lockdown measures that resulted in lower demand of advertising budget.  However, even the effect of containing the pandemic causing slowdown of business operation but the enlarging of outdoor media network to Vietnam is still showing the growth potentiality as noticed in the economic growth in Vietnam in 2020, which managed through the crisis and able to grow by 2.9%¹. It is regarded that Vietnam is successful in controlling the pandemic of COVID-19. In addition, the economic stimulus packages by government sector including the endeavor to distribute vaccines starting from the beginning of 2021 is expected to push on the recovery of business activities and uplift the world economic later”.

In year 2020/21, the Company recorded total operating revenue at THB 2,064mn, decreasing by 27.7% YoY, mainly from the impact of aforementioned pandemic crisis of COVID-19. The Advertising business represented 31.4% of the total revenue or THB 648mn, decreasing by 52.6% YoY while the Domestic Advertising revenue was THB 491mn, a decrease by 49.0% YoY and International Advertising revenue was THB 157mn, a decrease by 61.0% YoY and the System Integration services revenue contributed 68.6% of the total revenue at THB 1,416mn, decreasing by 5.0% YoY. 
 

Presently, despite vaccines distribution in many countries, the Company forecasted that the business operation in 2021/22 is uncertain due to the prolonged economic crisis from the impact of COVID-19 pandemic whereas the main factor of recovery in advertising industry depends on the policy to open the country which plays the important role to uplift investment and consumption of the private sector.  However, the impact of COVID-19 in 2021/22 is expected to be less severe comparing to the previous year when the whole country was lockdown. Under this situation, MACO will focus on the cost-efficiency and liquidity management as in the past year to improve profitability including ensure of sufficiently strong cash flow. The Company will closely monitor the financial performance to prepare for readiness to serve the new strategic plan continually.  Furthermore, when the world market is recovered, MACO will follow the strategic plan to expand its advertising network to overseas markets and step forward to be the leader of outdoor media in ASEAN region as according to the established targets. CEO added.

1 International Monetary Fund