UnUsUaL reports 21.7% higher 3Q earnings of $3.1 mil despite margin decline

UnUsUaL reports 21.7% higher 3Q earnings of $3.1 mil despite margin decline

Michelle Zhu
11/02/19, 06:40 pm

SINGAPORE (Feb 11): UnUsUaL Limited, the Catalist-listed subsidiary of mm2 Asia, reported a 21.7% y-o-y rise in 3Q earnings to $3.1 million compared to $2.5 million a year ago.

The bottomline growth was mainly due to higher revenue for the quarter, which rose 50% to $15.9 million from $10.6 million in 3Q18 due to increased contributions from the Promotion, Production and Other business segments.

Cost of sales rose 78.3% to $10.9 million for the quarter, from $6.1 million a year ago.

Gross profit grew 11.5% to $5.0 million, from $4.5 million the previous year, due to the higher cost of sales incurred.

While gross profit margin fell to 31.5% from 42.5% in 3Q18, net profit margin declined y-o-y to 19.2% from 23.7% in 3Q18.

The latest set of results brings UnUsUaL’s earnings per share (EPS) for 3Q19 to 0.3 cent, up from its EPS of 0.25 cent a year ago.

As at end December, cash and cash equivalents stood at $4.9 million.

Going forward, the group says it will continue its plans to expand from event production and concert promotion, to the ownership of globally appealing shows and other kinds of live entertainment intellectual properties (IPs).

Leslie Ong, CEO of UnUsUaL, attributes the group’s lower margins for the quarter to cost challenges, and highlights how net profit for 3Q remains “at about the same level as last year”.

“We are poised for more growth and expect to do better in FY2020 with a significant number of shows lined up,” says Ong.

“We will continue to venture into the family entertainment genre space to broaden our audience base and expand our footprint outside of Singapore,” he adds.

Shares in UnUsUaL closed flat at 30 cents on Monday.

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