MACO announced 2Q 2020/21 – total revenue decreased by 32.2% due to the COVID-19 impact

MACO announced 2Q 2020/21 performance with operating revenue of THB 507mn, decreased by 32.2% YoY. The key factor of the decline on overall performance was mainly affected by the delay of advertising demand due to the prolonged impact of COVID-19 pandemic, which plunged the world economy into a deep recession. Consequently, the advertising business both domestic and international were affected negatively. As a result, the Company recorded a net loss of THB 161mn in this quarter.

 

Mr. Phoon Chong Kit, Chairman of the Board and 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 region revealed that 2020 is regarded as the difficult and unpredictable year for the business of the Company from the declining of overall performance, which mainly resulted from the extended and prolonged impact of the Coronavirus crisis started from the beginning of 2020. This aforementioned impact rendered the extension of travelling restrictions and lockdown policy in several countries including Thailand, Malaysia and Indonesia – the Company’s main market. For the situation in Thailand, despite the success of controlling the pandemic of COVID-19, the economic growth is forecasted to contract to -7.8%1 which is the lowest growth among ASEAN. In addition, a tension of political issue and other negative aspects i.e., the decline of advertising spending and purchasing power from consumers and brands left uncertain outlook for the economic recovery. As a result, the revenue of advertising media decreased by 56.8% YoY to THB 179mn. Domestic advertising revenue was THB 122mn, a decrease of 52.6% YoY. International advertising revenue decreased by 63.8% YoY to THB 57mn and System Integration revenue contributed THB 328mn, a decrease of 1.5% YoY.

Furthermore, IMF predicted that GDP in 2020 of Malaysia and Indonesia will contract by -6.0% and -1.5%, respectively. As a result, the Company recorded a share of loss from the investment in joint ventures and associates of THB 53mn in this quarter, mainly caused by the severe COVID-19 impact in Indonesian market.  Nevertheless, the Company foresees a sign of recovery in Vietnamese market, which demonstrated the strongest GDP growth in ASEAN with estimated growth at 1.6%.

Eventually, in spite of MACO’s performance which negatively affected by the aforementioned circumstances, the Company will closely monitor the impact arising from the crisis and efficiently manage the cost and expense to ensure a sufficient cash flow and strong liquidity for our sustainable growth in the long run. CEO added.

¹Bank of Thailand