Earnings Report /
Thailand

VGI PCL: Deeper core loss than estimated

  • Core loss was deeper than our estimate

  • VGI posted a net profit of Bt68m for 2Q22

  • The top-line was Bt1.2bn, up by 33% YoY and 18% QoQ

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Follow
Bualuang Securities
14 November 2022

VGI is transforming from a media firm into a data-driven service provider by broadening its data trove of customer-related data and using it better in order to optimize the marketing efforts of brand owners in this age of empowered consumers and Big Data. We still have faith in its long-term growth potential. However, its short-term performance remains under pressure. Our call shifted from BUY to HOLD.

Core loss was deeper than our estimate

VGI posted a net profit of Bt68m for 2Q22 (their Jul-Sep quarter), a YoY turnaround and up 165% QoQ. Excluding gains from divestment and financial assets, the was a core loss of Bt147m, deeper in to the red ink by 78% YoY and 6% QoQ. VGI’s core loss was deeper than our estimate of Bt84m and the consensus projection of Bt38m, due to slimmer GM and heavier SG&A than we had predicted.