Synagie reports first half net loss nearly triples on higher expenses

Singapore two-dollar bills

E-commerce player Synagie reported on Wednesday its first half loss nearly tripled to S$3.44 million, from a loss of S$1.15 million in the year-earlier period, amid higher expenses.

Revenue for the six months ended 30 June rose 132.4 percent to S$6.87 million, it said in a filing to SGX after the market close on Wednesday.

“The revenue increase was due to an increase in online sales volume as Synagie adopted a more proactive marketing strategy with Brand Partners to promote their products in various online marketplaces; an increase in the number of Brand Partners from 186 as at 2017 to more than 250 as at first half of 2018; and the new revenue contribution from the Insurtech business,” it said in the statement.

Finance costs surged to S$470,000 in the first half from S$5,000 in the year-earlier period, while administrative expenses climbed to S$4.55 million in the period, from s$1.48 million in the year-ago half year, Synagie said.

The administrative expenses included one-off expenses of S$1.7 million, which consisted of IPO expenses, amortization of convertible notes and professional fees for the acquisition of a Third Party Administrative (TPA) subsidiary amounting to S$1.0 million, S$500,000 and S$200,000, respectively.

In its outlook, Synagie said it planned to further expand in Southeast Asia, beginning with the Philippines by the end of 2018, followed by Vietnam in 2019.

“Southeast Asia’s expanding middle class is expected to stimulate the e-commerce market with their higher purchasing power, especially with the introduction of new banking models and greater access to loans and credit,” Synagie said.

The total gross merchandise value of Southeast Asia’s e-commerce industry grew from US$5.3 billion in 2014 to US$16.6 billion in 2017 and was expected to reach US$45.6 billion by 2020, Synagie said, citing Frost & Sullivan data.

 

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