MACO Posts 3Q21 Revenue of THB567 Million, Spurred by System Integration and Domestic Advertising

Master Ad Public Company Limited (SET: MACO) announced its 3Q 2021/22 operational performance, achieving 27% growth in total revenue to THB567 million, thanks mainly to increase installation and improvement of its System Integration business and minimum revenue guaranteed from Plan B Media Public Company Limited (SET: PLANB), along with growth from domestic advertising.

In this quarter, MACO’s System Integration segment grew by 35% YoY to THB442 million, accounting for 78% of the Company’s total revenue. Meanwhile, 22% of the Company’s total revenue, or THB125 million, came from its Advertising segment, an increase of 4% YoY. Of this, THB105 million came from its domestic Street Furniture, a 9% increase YoY, and THB20 million came from international advertising, a decline of 17% YoY. However, while the Company’s overall revenue grew, it saw a net loss of THB17 million with net loss margin of 3%, increasing by 107% YoY, due to share of loss from investment in joint ventures and associates.

Commenting on the Company’s overall gains, Mr. Phoon Chiong Kit, CEO of MACO, noted, “In the past few years, the gaming industry in Thailand has received growing interests from investors as well as support from the Government through the creation of the Thailand E-Sports Federation (TESF). As such, the industry has grown by 15% – now valued at THB29 billion – and is expected to reach THB40 billion in 2022. Therefore, one of our key business developments this quarter is our joint venture partnership with YGGDrazil Group Public Company Limited or YGG, the leading provider of visual effect and 3D animation, specialising in commercials, feature films and games in Thailand, to launch a Game Publishing business with the aim to release at least 2 new games this year. Moreover, our Board’s decision to sell our entire domestic billboard assets to PlanB was approved during the extraordinary general meeting session of our shareholders; while we also secured capital gains from the issuance of rights offering (RO) to shareholders, amounting to THB 1,286mn. The proceeds will be used towards restructuring our debt and for new investments, especially in the digital and tech businesses.”

“As for our management outlook following our strategic move into the digital market through investments in Zipmex and the joint venture with YGG, we are transforming MACO to embrace new opportunities beyond traditional OOH media. Through our cash flow strengthening our financial performance, combined with our comprehensive ecosystem covering Thailand and ASEAN, we are making strategic innovations that will help us keep pace with businesses of the future and ensure we are able to deliver stable and sustainable returns for our shareholders and all stakeholders in the years to come,” added CEO of MACO.