More ad spending has shifted to VGI’s media platforms in Jan and Feb compared with a year-ago period after VGI widened its network through acquiring stakes in five firms.

VGI plans to re-package its office building media after the number of buildings under media management contracts has increased to 172. MACO is expected to continue to grow at a healthy pace helped by its nationwide network, consolidation with COMASS and the conversion of 35 static to LED digital billboards in Jan 2018 from 21 3QFY17/18.

VGI will continue to recognize losses from Rabbit Line Pay due to continued marketing spending and the business should start to break even in the third year after it acquired shares from BTS Group in Mar 2017. It will also experience loss contributions from associates but they will be compensated by revenue from nine stations under its cross‐media ‘station sponsorship’ campaign. VGI aims to raise the number of stations to 15 and hints that it will have a now undisclosed business partner. Our ‘ACCUMULATE’ rating remains intact with a target price of Bt6.80/share.