Q1 2027 BTS Group Holdings PCL Earnings Call
Speaker #1: 2026-2027. My name is Kant from investor relations team, and I will be your moderator during this presentation. In today's session we will begin with an overview of our business updates and financial performance, followed by the Q&A sessions.
Speaker #1: Today we are honored to welcome all the management team starting from คุณสรพงษ์ CEO of Move Business. คุณแดเนียล CIO of BTS Group คุณชวดี CFO of BTS Group คุณสิริเพ็ญ Fund Manager of BTS GIF คุณจิตเกษม CFO of VGI and คุณสรยา Acting CEO and CFO of Rapid Holdings.
Speaker #2: สวัสดีค่ะ
Speaker #1: Along with other members of the management and IR teams. Before we begin, kindly ensure your microphones are mute and you may unmute them during the Q&A sessions.
Speaker #1: To start, I would like to hand over to คุณแดเนียล to recap on the financial performance for this quarter.
Speaker #3: Thanks, Kant. Good afternoon, everyone. It's 12 weeks since we last met. As usual, we have a full squad on hand to bring you our first quarterly update of the fiscal year ended 31 March 2027.
Speaker #3: Today is 19 August, and the fiscal year end is only 7 months away, but the way the world is changing fast by then we've probably lost all of our jobs to AI, my only comfort is that even if we're replaced by IR, so as the analysts and all the fund managers on the call are probably also lose their jobs.
Speaker #3: So I'm sure those calls will be very exciting. Anyway, moving to the quarterly business highlights, where it seems the world moves at a much slower pace.
Speaker #3: Looking at the highlights that we've listed on this page, with regards to the common ticketing scheme, there's a real political will behind this policy.
Speaker #3: And there's no public objection, so that's a good start. And the government has announced a target date for the implementation of 1 January 2027.
Speaker #3: So we're very hopeful on that. In parallel, to that, BSS, which sits under VGI and MICS, has been very busy collaborating with common ticketing stakeholders, on the feasibility of the EMV implementation.
Speaker #3: Within match, the key change in the quarter really related to revenue recognition, and that was related to the European hotel portfolio, which was reintegrated back into Rabbit Holdings portfolio.
Speaker #3: If you remember, there was about a 3-year period when this portfolio was signed under an SPA, and Rabbit Holdings was recording lease income. But since April and the cancellation of that SPA, now Rabbit Holdings incorporates both the revenues and the cost of the underlying hotels.
Speaker #3: Rocktech also had an acquisition of the remaining 18.4% stake in Tract and Sad during that quarter. Cutting to the financials, on the P&L we see some directional improvements.
Speaker #3: Operating revenue 6.1 billion baht, up 5% year on year, 9% Q on Q. Share of profit of investments was significantly up year on year, recurring EBITDA 2.8 billion for the quarter, up 3% year on year.
Speaker #3: However, net loss still remains a loss. So net negative, net profit. Company net loss of 496 million, and net loss attributable to the shareholders of 388 million.
Speaker #3: Balance sheet, however, strengthened. The headline level total assets declined marginally. However, we saw an increase in cash and cash equivalents. And also a decrease in total debt.
Speaker #3: On the cash flow, again, very simple for the first quarter, and we'll come to that in the next slides. Moving now on to the first quarter P&L snapshot.
Speaker #3: Total revenue of 7.492 billion, up 3% year on year. But 15% up Q on Q, that 15% increase again mainly due to what I mentioned before, the integration, reintegration of the hotel portfolio from Vienna House, operating revenue 6.122 billion.
Speaker #3: You can see the revenue bridge in the bottom right-hand corner. A decline in contribution from Move which is more than offset with an increase from match.
Speaker #3: Recurring EBITDA 2.822 billion baht, up 3% year on year. Downs 18% Q on Q. Again, that Q on Q decline is mainly due to a lower share of net profit, red 18 to no repeat of a one-off share from Sansiri last quarter.
Speaker #3: Leading is down to net profit negative 388 million, margins are broadly similar on a year on year basis. And finally, operating revenue breakdown for the quarter, 43% from match, 38% from Move, and 19% from MICS, moving on to the cash flow snapshot.
Speaker #3: First quarter is always a relatively more simple picture. Operating cash flow positive 3.38 billion baht, net investing cash flows of 6.6 billion received mainly from investments in financial assets, but some also some And financing cash flows netted out with interest payments of 2.2 billion, largely offsetting debentury payment of around 2.6 billion, leaving us with around 25 billion.
Speaker #3: Ending cash, and that excludes the additional 29 billion of liquid investments. Now over to Satsy for the segmental performance. Thank you.
Speaker #4: Thank you, Khun Daniel. Good afternoon, everyone. I'm Satsy. I'm from BTS Group, and I will walk you through the performance of Move, MICS, and match businesses for the quarter, starting with Move.
Speaker #4: Operating revenue was 2.4 billion baht, down 12% year on year. But remained broadly flat quarter on quarter. The decrease was mainly due to the absence in construction revenue following the completion of the pink line extension.
Speaker #4: This was partly compensated with flat bulk revenue increased 5% year on year, supported by continue ridership growth on the pink and yellow line. O&M revenue also continued to grow steadily, up 3% year on year.
Speaker #4: To 1.9 billion baht, as shown in the bottom bar of the chart. And meanwhile, share of profit from BTS CIF declined 47% year on year, mainly due to the amortization of the fund investment.
Speaker #4: Moving on to the MICS business. Operating revenue was 1.1 billion baht, up 4% year on year, mainly driven by higher revenue from digital services and distribution segment.
Speaker #4: Advertising revenue was broadly flat year on year, while the utilization rate decreased slightly by 49%, decreased slightly to 49% from 51%. For digital services, revenue was up 7% year on year.
Speaker #4: This was mainly from higher insurance commission and lead generation revenue from iCare. As well as higher interest income from iCash, in line with the growth in outstanding loans.
Speaker #4: From the distribution revenue also grew 10% year on year, mainly driven by RBI, with stronger sale of high margin products such as pet products, beauty products, and smartwatch.
Speaker #4: For this quarter, on the share of profit, MICS recorded 200 million baht this quarter, up 380% year on year. The increase mainly came from the contribution from Plan B, following the reclassification as an associate in July last year.
Speaker #4: And lastly, moving on to the match business. Revenue increased to 2.6 billion baht, up 26% year on year. This was mainly driven by higher real estate revenue from Rabbit, following the retransfer of the European hotel portfolio back to Rabbit in April this year.
Speaker #4: Rabbit contributes 1.6 billion baht in revenue, real estate revenue grew 55% to 1.4 billion baht, mainly due to the retransfer of European hotel portfolio as I mentioned earlier.
Speaker #4: On the other hand, financial services revenue decreased 19% year on year, mainly due to lower insurance revenue from Rabbit Life. And Logitech also continued to perform well.
Speaker #4: Revenue increased 7% year on year, to 0.9 billion baht, supported by continue growth in both transportation solutions and digital display solutions. Turn to our financial position.
Speaker #4: Overall, we remain in a stable position, with healthy liquidity and adjusted net debt to equity improvings slightly to 1.3 times from 1.4 times. And this is all about the financial performance.
Speaker #4: Next, I would like to hand over to Khun Kanthon for Move business update ka.
Speaker #3: Thank you, Khun Satsy. On this slide, we would like to provide current status on the Woodpower project, in which we hold a 40% stake.
Speaker #3: Following the receipt of the notice to proceed or NTP since April 2026, the project is currently undergoing feasibility studies and the design process. To determine an appropriate development framework that reflects current economic conditions and the evolving business landscape.
Speaker #3: In parallel, the level and government agencies are finalizing a special incentive package for UTA and potential investors the package is expected to attract global investment and stimulate economic activity within the area.
Speaker #3: Next, move to the MICS business update by Khun Walid.
Speaker #1: Thank you, Khun Kanthon. My name is Walid from VGIAR team, and I will provide an update on our MICS business performance. Overall, VGI maintains solid performance and strong profitability growth with a revenue of 1.1 billion baht and net profit excluding non-recurring items, of 86 million baht, up 92% year on year.
Speaker #1: For advertising business, despite advertising industry spending from transit out of home and in-store fell down 5% year on year, we still maintain resilient revenue.
Speaker #1: In the last quarter, we launched new model packages with Plan B, BTS, and City Sync, and introduced our packages Welcome Takeover, to deliver seamless bank communication and visibility.
Speaker #1: As a result, our advertising revenue remains strong, especially revenue under Plan B management, up 3% year on year. For digital services, we saw improvements from our business units.
Speaker #1: Rabbit Card is conducting a feasibility study on EMV card development to support the government common ticketing policy and for system connectivity. Rabbit Care already broke even at the net profit level last year, and is expected to contribute higher revenue and profit to VGI.
Speaker #1: Rabbit Cash remains on track to expand its loan portfolio across both nano and welfare loans, while targeting financial inclusion for SME as a result, Rabbit Cash was awarded the best financial inclusion initiative in fintech 2026 by Global Business Outlook.
Speaker #1: Moving on to distributions, Turtle now operates 36 shops including four pilot Turtle X in Bangchak gas station, while leasing occupancy rate up from 60% to 63% year on year.
Speaker #1: Rabbit Buys introduced new products including the Disney license custom portable fan like space fiber jelly and bullship, with received positive market response this aim to drive sales and narrow loss by year end.
Speaker #1: From our strong first quarter, we remain confident in achieving our revenue target of 5 to 5.5 billion baht, different by strong digital services growth and advertising improvements especially during our third quarter peak season.
Speaker #1: That concludes our big business update. I will now hand over to Khun Kittipot for the math update.
Speaker #2: Thank you, Khun Walid Kittipot from Rabbit IR team. Rabbit is a subsidiary of BTS Group Holdings, which holds approximately 68%, starting with second quarter 2026 financial snapshot of Rabbit Holdings.
Speaker #2: Total revenue was 1,800 million baht, increasing by 15% year on year. Gross operating profit was 900 million baht, net profit was 38 million baht, improving from 57 million baht in second quarter last year.
Speaker #2: In terms of segment breakdown, the real estate business from the core distributor representing 80% of total revenue, with financial services and other income contribute to 12% and 8% respectively.
Speaker #2: During this quarter, real estate revenue increased by 26% year on year, primarily driven by growth in the hotel segment, following the business retransfer of European hotel portfolio with operations transforming back to Rabbit management.
Speaker #2: Financial services revenue decreased by 10% year on year, mainly due to the live insurance business from lower group insurance sales. Other incomes declined by 19%, largely owing to lower gains on exchange rates moving to the right-hand side of the slide, I outline the impact of business retransfer of European hotel portfolio.
Speaker #2: Between 2022 and 2025, Rabbit recognized rental revenue from this portfolio of approximately 150 to 175 million baht per quarter, following agreement termination and the business retransfer Rabbit transition to recognizing direct hospitality revenue and expenses starting in April this year.
Speaker #2: For second quarter 2026, the portfolio generated 700 million baht in revenue with a 66% occupancy rate, looking ahead Rabbit will continue managing operation directly with evaluating opportunities with prospect Lizzy and buyer.
Speaker #2: Next, I would like to hand over Khun Panita to take IR team for further match update. Thank you.
Speaker #4: Thank you, Khun Kittipot. Hello, everyone. I'm Panita from Rocktech IR team. Please allow me to walk you through Rocktech performance starting from the left-hand side of this slide.
Speaker #4: In this quarter, we began the year with double-digit top-line growth with opening revenues over 900 million up 11% year on year. The key driver remained our ICT solution, which now represents almost 90% of total revenue, supported by continue progress in transportation solution and strong momentum in digital display solution.
Speaker #4: But partially offset by project timing in integrated technology solution, at the same time, our advertising business continue to provide recurring revenue despite this seasonal pattern of advertising expenditure.
Speaker #4: On margin, we remain resilience for this quarter, gross profits increased 1.4% year on year, over 200 million with gross profits margin remain at 25.3%.
Speaker #4: Although there was some margin pressures in revenue mix and project timing, but overall margin performance remained intact. At the bottom line, NPAT down 7% year on year, to 113 million with net profit margin remain healthy at 12.4%.
Speaker #4: For this year, Outlook will be supported by opening leverage from a larger ICT revenue base, flat SG&A expense, and we are exploring AI solutions from our in-house R&D to generate additional growth potential.
Speaker #4: Now, if I turn to the center of the slide, this highlight two key developments over this quarter that show how dividend growth and business strategy expand across our ICT pillars.
Speaker #4: Begin with 2026 AGM, Rocktech had dividend payout at 62%. If we look at the big picture, the three-year dividend purchase carrier was 12%, reflecting Rocktech translate revenue growth into the return value back to shareholder in term of dividend growth.
Speaker #4: Now, if I turn to the another six key significant development, Rocktech acquired the retaining 18.35% stake in Transas from minority shareholders for 617 million.
Speaker #4: The full ownership will capture the entire economic benefits from the business. Overall, this quarter reflects quality growth with double-digit earning delivery Rocktech successful scale our ICT platform, maintain margin resilience, and strong operating leverage.
Speaker #4: This is the Rocktech performance for this quarter, and I would like to hands over to Khun Siripen for update our BTS GIF ค่ะ. Thank you ค่ะ Khun Panita.
Speaker #4: Good afternoon, everybody. Today I will present the financial performance of BTS GIF for the first quarter of fiscal year 2026/27. In the first quarter, total income of the fund was 1,73 million baht, down 1.4% year on year, and 6.7% Q on Q.
Speaker #4: Mainly attributed to the income from investment in NRTA, which decreased 1.1% year on year and 6.8% Q on Q to 1,069 million baht. Total expenses of the fund were 12.1 million baht, decreasing 2.8% year on year.
Speaker #4: On a Q on Q basis, total expenses declined 17%, mainly from the decrease in fund management fee and appraisal and expense from appraisal fee.
Speaker #4: Profit from net investment was 1,061 million baht, decreased 1.4% year on year and 6.6% Q on Q. In this quarter, the fund recorded loss on investment of 850 million baht from the decrease in the remaining period of the line in revenue under concession agreement.
Speaker #4: Changes in net asset resulting from operation were 211 million baht, decreasing 55.7% year on year, but increasing 112% Q on Q. Next is the income from investment in NRTA.
Speaker #4: In the first quarter, Fairbox revenue was 1,548 million baht, decreasing 0.5% year on year and 8.1% Q on Q. Q on Q decrease came from the leadership decrease of 8.4% to 46.1 million chips due to seasonal holiday impact.
Speaker #4: But was partially offset by the fair increase of 0.3% Q on Q. On the earning aim cost, earning aim cost were 480 million baht, slightly increasing 0.9% year on year but decreasing 11% Q on Q.
Speaker #4: Q on Q decrease came from the decrease in maintenance expense from rolling stock refurbishment and civil work. Income from investment in NRTA was 1,069 million baht, decreasing 1.1% year on year and 6.8% Q on Q.
Speaker #4: Next is the statement of financial position. As of 30 June 2026, total assets were 17.46 billion baht. The main component were investment in NRTA of 15.9 billion baht, decreased by 850 million from 31 March 2026, and investment in security and cash of 1.4 billion baht.
Speaker #4: And other assets of 189 million baht. Total liabilities stood at 86 million baht. Net asset value as of 30 June 2026 was 17.38 billion baht, equivalent to 3.0019 baht per unit.
Speaker #4: Next is the core network performance. In the first quarter, ridership was 46.1 million chips, declining by 0.7% year on year. On a Q on Q basis, ridership decreased by 8.4%, largely caused by seasonal holiday impact.
Speaker #4: Average weekday ridership was 584,000 chips, down 0.7% year on year and 6.3% Q on Q. Average fare in the first quarter was 33.6 baht per trip, slightly increasing by 0.2% year on year.
Speaker #4: And 0.3% Q on Q. Next is the distribution. The fund announced the capital reduction for the first quarter of 0.193 baht per unit. Book closing date is on 27 August 2026, and payment date is on 10 September 2026.
Speaker #4: Total distribution since inception is 8.789 baht per unit. That's all for BTS GIF ค่ะ. Thank you.
Speaker #1: thank you ครับ Khun Siripen. And before we move to the Q and A sessions, we would like to provide some additional context on this quarter SG&A expense I would now like to invite Khun Sinatha, Director of IR, to walk through on this slide.
Speaker #4: Thank you, Nongkarn. On the screen in front of you, we prepared this slide to illustrate the breakdown and the adjustment of the our SG&A expenses.
Speaker #4: Let me take you through it, starting with the top left table. Reported SG&A was 31% year on year, or 460 million baht. To reach 1.9 billion baht, pushing reported SG&A to revenue from 28% to 32%.
Speaker #4: However, this includes the non-cash and one-off items. As detailed in call-out number one and number two on the right, we normalized this expenses by excluding non-cash PPA adjustment from the selling expenses.
Speaker #4: As well as depreciation, amortization expense, and the expenses related to Warsaw International School, one-off items from the admin cost. After this adjustment, as shown in the top right chart, our underlying ratio is far more stable.
Speaker #4: Adjusted selling expense to revenue is up from 6% to 7%. Adjusted admin expense to revenue moved from 18.9% to 19.5%. And then total adjusted SG&A to revenue increased by just 1.4 percentage point, from 25.2 to 26.6%.
Speaker #4: Separately, at the bottom left table and call-out number three, normalized SG&A in absolute term increased by sorry, by only 19% year on year, or around 200 million baht, compared to 31% reported.
Speaker #4: The 86 million baht increase in the selling expense was primarily driven by the promotional and marketing expense within VGI, and another 167 million baht increase in the admin expense was mainly due to the retransfer of the European hotel business back to Rabbit Management, as mentioned earlier.
Speaker #4: Importantly, if we adjust all the impact from the European hotels, our admin expense to revenue ratio would stand at around 19%, broadly in line with first quarter in last year.
Speaker #4: So in short, I would say that the key takeaway is that our core SG&A base is well managed, and that our holiday bid hire reported SG&A ratio simply reflects a change in our business restructure at the European hotel business, rather than the cost inflation.
