SINGAPORE (Nov 6): Kingsmen Creatives' announced 3Q17 earnings increased 33.4% to $819,000 compared to $614,000 in 3Q16.
However, revenue dipped 10.1% to $69.1 million from $76.9 million a year ago.
The group’s exhibition and thematic division recorded a 2.7% rise in revenue to $32.3 million. The key contributors to the division's revenue included major events and projects.
The revenue for the retail and corporate interiors division dropped 20.8% to $30.6 million compared to $38.6 million last year, due to the completion of several key projects in 2016.
Meanwhile, the research and design division recorded a 6.8% decrease in revenue to $3.2 million from $3.4 million in 3Q16. Key accounts that contributed to the division's revenue includes Burberry, Madame Tussauds, Procter & Gamble Co., Robinsons and Tencent, and thematic projects in the region.
The alternative marketing division saw a 10.7% decline in revenue to $3.0 million from $3.4 million in 3Q17, with key contributors including DFASS, Global Young Scientists Summit, International Public Policy Association, Shinnyo-en Singapore, StarHub and Techinnovation 2017.
Concurrently, cost of sales also declined 11.0% to $52.7 million compared to $59.2 million last year.
Hence, 3Q17 gross profit stood at $16.4 million, a 7.2% drop from $17.7 million in the same period last year.
Lower operating expenses were incurred in 3Q17 compared to 3Q16.
Depreciation charge on property, plant and equipment dropped 20.5% to $485,000 from $610,000 last year, mainly due to fully depreciated assets.
Employee benefits expense was 3.65 lower at $12.9 million compared to $13.4 million, due to reduced headcount and lower performance linked incentives recorded.
However, other expenses rose 8.6% to $3.02 million compared to $2.79 million, mainly due to a higher net foreign exchange loss of $0.3 million recorded. This arose mainly from the appreciation of SGD against bank deposits held in USD.
As at Oct 31, the group has secured contracts amounting to $315 million, of which $295 million is expected to be recognised in FY17.
Looking forward, the group expects FY17 to be a profitable year. The group’s management continues to see good opportunities for growth and plans to expand its reach into new markets and services, underpinned by the growing demand for unique, engaging, diverse and original experiences.
Shares in Kingmen closed 1 cent higher at 58 cents on Monday.
