Kingsmen Creatives reported on Tuesday its 2018 net profit dropped 16.3 percent on-year to S$8.15 million, despite higher revenue, as expenses rose.
Revenue for the year increased 17.5 percent to S$360.93 million, the communication design and production group said in a filing to SGX after the market close on Tuesday.
“The growing trend towards experiential bodes well for us and we are well equipped and confident of capitalizing on the opportunities available,” Andrew Cheng, group CEO of Kingsmen, said in the statement.
“Beyond the creative and fulfilment services we currently provide to our global clients, we will expand into branded experiential attractions, and focus on three broad areas: active play, edutainment and live events,” Cheng said.
He pointed to the launch of TOYBOX, a multi–brand carnival, from Hasbro in Asia, and the upcoming opening of the NERF experience in Singapore as a guideline for building the company’s branded business.
The exhibitions and thematic division saw revenue for the year rise 17.2 percent to S$160.3 million on completion of several major events and projects, including the Formula 1 Singapore Grand Prix, the National Day Parade 2018 and the Singapore Airshow 2018, Kingsmen said.
The retail and corporate interiors division’s revenue increased 20.1 percent on-year in 2018 to S$172.0 million, amid contributions from key accounts including AIA, Coach, Fendi, Nike and Singtel, it said.
The research and design division reported revenue increased 10.3 percent on-year to S$17.1 million in 2018 amid contributions from key accounts including Burberry, Procter & Gamble and Tencent, Kingsmen said.
Expenses rose, with depreciation costs increasing on the new headquarters building and related equipment, as well as a higher headcount from its new experiential attractions business, Kingsmen said.