BTS expects revenue to triple this year on the back of VGI success

BTS Group Holdings, the skytrain operator, expects revenue growth to double or even triple this year following the successful listing of its subsidiary VGI Global Media.

Keeree Kanjanapas, the chairman of the BTS Group, said the company will book 2.17 billion baht in extraordinary gains from the VGI listing in its fiscal third quarter.

BTS sold a 30% stake in VGI via an initial public offering (IPO) last month.

VGI, which manages ad space on BTS stations and trains, floated 88 million shares in its IPO at 35 baht a share.

Of the offering, 66.68 million shares were placed with the public and 21.32 million with BTS shareholders.

Shares of VGI closed yesterday on the SET at 55 baht on their first day, up 20 baht, in heavy trade worth 4.32 billion.

BTS shares closed at 5.80 baht, down 25 satang, in heavy trade worth 1.92 billion.

For fiscal 2012 ending March 31, BTS posted a net profit of 2.1 billion baht on revenue of 9.25 billion.

The BTS Group operates mass transit, property, media and services.

Mr Keeree said the company views itself as an infrastructure developer and will slow its new property investment.

It will also consider joint partnerships for new developments or even divestments of existing land holdings.

BTS's land holdings in Greater Bangkok are worth 15 billion baht.

"We want investors to know the BTS Group as an infrastructure developer. We stand to participate in the government's new mass transit projects no matter what the investment structure will be," said Mr Keeree.

Bangkok Mass Transit System (BTS) was previously a subsidiary of Tanayong, the property developer that listed on the stock exchange in 1991.

Tanayong changed its name to BTS Group Holdings and switched sectors to transportation and logistics in 2010.

Mr Keeree said transportation and infrastructure proved difficult areas to start up but offered steady returns once the company was past the initial stages.

Both Tanayong and Bangkok Mass Transit System entered court-supervised restructuring following the 1997 economic crisis.

About the author

Writer: Darana Chudasri
Position: Business Reporter