SINGAPORE (Nov 13): E-commerce company YuuZoo Corporation announced 3Q17 earnings of $7.9 million, up 24% from its earnings of $6.34 million a year ago on higher revenue and lower costs.
Revenue for the third quarter ended Sept grew 13% to $15.6 million from $14 million previously, which the group says was mainly due to improved franchise & celebrity-branded network sales.
This was however offset in part by a decrease in payment revenue for the quarter, which resulted from the group’s discontinuation of its payment services to certain client segments which it deems of high-risk profile.
Meanwhile, significantly lower benefit expenses of $0.6 million were incurred in the latest quarter, down 41% from $1 million a year ago due to the reduction of headcount in Singapore and China.
Cost of services also fell 97% over the quarter to $0.1 million from $2.4 million in the previous year on the back of a decrease in payments revenue and the costs associated with that revenue, as well as improvements in the group’s operational efficiencies and its headcount reductions.
In its outlook, YuuZoo says it believes the group’s unique concept of growing internationally through a network of franchisees and partners, in addition to its focus on developing unique disruptive new business models that can be patented, will continue to give the company a competitive edge in the next 12 months.
As at 4:38pm, shares in YuuZoo are trading 5.2% higher at 6.1 cents.
