SINGAPORE (Aug 14): Cityneon Holdings announced earnings of $7.7 million for the 1H17 ended June, up 62.4% from $4.7 million in 1H16.
Revenue for the quarter grew 7.3% to $49.7 million from $46.3 million a year ago, driven primarily from a 60.8% surge in contribution from the group’s Intellectual Property Rights (IPR) segment to $16.5 million from $10.2 million in the previous year.
The group’s four other traditional businesses – interior architecture, events, exhibitions and experiential experience – also showed a positive turnaround in the half-year amid competitive business environment in the sectors, says Cityneon in its press release on Monday.
This stronger performance was due to the positive effects of a cost rationalisation exercise resources by focusing on key business areas, it adds.
As at end-June, net asset value (NAV) was $74.7 million, which translates into 30.5 cents per ordinary share and represents an increase of approximately 7.8% from that of FY16.
Cityneon is currently in the midst of negotiating the acquisition of its third IPR to boost its portfolio of two Intellectual Properties, Avengers S.T.A.T.I.O.N. as well as Transformers’ Autobot Alliance.
The transaction is expected to be completed by 3Q17.
“We are delighted to be able to present a set of stellar half-year results in this uncertain economy. This is even more remarkable because even though we had good results last year, we managed to surpass our net profits in 1H17 above what we did in FY16, fuelled by our IPR business,” says Ron Tan, executive chairman and group CEO of Cityneon.
Shares in Cityneon closed 0.5% higher at 94 cents on Monday.
