17LIVE has posted a deeper loss of US$118.2 million ($161.5 million) for the 1HFY2023 ended June 30, compared to the loss of US$42.0 million in the 1HFY2022 and the US$51.0 million loss in the FY2022.
After including revaluation loss on its financial liabilities, the company posted an adjusted profit of US$9.4 million for the 1HFY2023, reversing from the adjusted loss of US$4.0 million in the same period the year before.
17LIVE is the company which Vertex Technology Acquisition Corporation
1HFY2023 operating revenue fell by 24.65% y-o-y to US$151.0 million due to the normalisation and resumption of economic activities following Covid. The lower revenue was attributed to the group’s shift to focus on profitability by targeting quality users over scale as well.
Gross profit fell by 3.66% y-o-y to US$63.1 million although gross profit margin (GPM) improved by 9.1 percentage points y-o-y to 41.8%. The higher GPM was attributed to the higher contribution from 17LIVE’s high-margin in-app game revenue which is not subject to revenue sharing arrangements, lower channel costs from optimised payment methods, and a decrease in server and bandwidths costs.
Adjusted ebitda surged to US$15.8 million in the 1HFY2023 from US$4.3 million in the 1HFY2022. This was due to lower selling expenses from the group’s shift to return-driven marketing strategy and lower employee benefits expenses arising from a more streamlined staffing structure.
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As at June 30, cash and cash equivalents stood at US$39.9 million.
Shares in VTAC closed 2 cents higher or 0.41% up at $4.90 on Oct 23.
