Earnings Report /
Thailand

VGI PCL: Apr-Jun net loss was much shallower than our estimate

  • Net loss was 37% shallower than modeled

  • VGI posted a net loss of Bt104m for 1Q20

  • VGI’s net loss was 37% shallower than our estimate and 19% shallower than the consensus projection

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Follow
Bualuang Securities
13 August 2020

Prevailing weak ad spend drags on the short-term profit outlook, but we see a U-shaped recovery manifesting. We don’t believe that COVID-19 will irrevocably dissuade people from going outside, so OOH media will remain a major component of future ad budgets when conditions normalize. BUY!

Net loss was 37% shallower than modeled

VGI posted a net loss of Bt104m for 1Q20 (the Apr-Jun quarter), a YoY and QoQ reversal. VGI’s net loss was 37% shallower than our estimate and 19% shallower than the consensus projection, due to a fatter GM and smaller equity losses among affiliates than we had assumed.