BTS aims to double revenue in five years
BTS Group Holdings aims to more than double its annual revenue within the next five years, driven mainly by its involvement in big infrastructure projects. The company is awaiting the release of the terms of reference for high-speed and double-track rail projects planned for the Eastern Economic Corridor (EEC).
Also projecting strong revenue gains is subsidiary VGI Global Media, which is looking to reach the Bt10 billion mark in annual sales in three years.
BTS Group Holdings Plc chairman Keeree Kanjanapas said that the group expects that over the five years it would boost its revenue by 25 per cent each year.
He said it would do so by advancing its pipeline of projects, such as those involving the collaboration with Sino-Thai Engineering and Construction Plc (STEC) and Ratchaburi Electricity Generating Holding Plc (Ratch) for the establishment of the BSR consortium in order to bid for the high-speed and double-track rail projects in the EEC.
BTS owns 75 per cent of the BSR consortium, with STEC holding 15 per cent and Ratch, 10 per cent.
He said that for the high-speed and double-track rail project, the BSR consortium is waiting for the term of reference (TOR) for the project, which will be announced by the end of this month. The consortium will then spend time around one month to study and consideration to bidding.
“We believed that we have experience to construction the infrastructure rail and able to support the project. However, we are waiting and see the TOR, which will be announced in the near future. We are then will able to disclose about the bidding in the next step. However, the BSR also spent around six month to study the demand for the high-speed rail project in support of the EEC project,” said Keeree.
BSR will also start construction on the Green Line mass transit project in December and expects that work will be finished within the next couple of years. The route will take passengers from Bangkok’s outskirts to the inner areas. BSR also won contracts for work on the Pink and Yellow lines of the mass transit system.
“BTS Group Holding’s main business is to lay down rail infrastructure. We still focus on our main business, which is continuing to enjoy growth. We also have VGI, which provide customer-oriented media and U City, which focuses on property business in the domestic and international markets,” Keeree said.
Alongside VGI Global Media, U City is a subsidiary of BTS Group Holdings. U City focuses on the property business, covering hotels and condominiums. Around 70 per cent of its total investment is in a European hotel portfolio.
VGI Global media has invested Bt5.9 billion in Kerry and expects that investment to help it reach the Bt10 billion revenue target in three years.
Kavin Kanjanapas, chairman of the executive committee of VGI Global Media, said that the firm in August will proceed from exercising warrants worth Bt12 billion and will put the money to a range of investment purposes. As well as a stake of 23 per cent in Kerry Express (Thailand), it will invest in artificial intelligence (AI) ventures and joint ventures with other companies, such as with Aeon.
The company took a decisive step to acquire Rabbit Group in 2017 in order to capitalise on Rabbit’s sophisticated data sets and technology within its payment and digital service platforms. However, the firm will transform its traditional business into a digital basis. It has around 10,000 traditional billboards and plans to have 40 per cent of them with digital technology within the next three years.
The firm has expanded its business offerings from the traditional offline out-of-home (OOH) media to embrace an integrated offline and online platform, enabling it to provide offline-to-online (O2O) solutions.
This aims to optimise customer engagement and “deliver a seamless, customers experience” for the market.
“Our vision is to create a seamless ecosystem. We will enrich our data through strategic alliances and research and development as well as strengthen our O2O platform through the continual enrichment of our data sources,” said Kavin.