Kingsmen Creatives reports 3Q19 net profit tumbled 93 percent

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Kingsmen Creatives reported Thursday its third quarter net profit tumbled 93 percent on-year to S$115,000, mainly on costs from new business areas.

Revenue for the quarter ended 30 September slipped 1.2 percent on-year to S$90.85 million, the company said in a filing to SGX.

The exhibitions and thematic segment posted an 8.9 percent increase in revenue to S$41.78 million for the quarter, with key contributors including the Formula 1 Singapore Grand Prix, the National Day Parade 2019, Shenzhen Binhai Tencent Exhibition Centre and the Singapore Bicentennial Event.

The retail and corporate interiors segment reported revenue fell 9.3 percent on-year to S$43.52 million, with the key accounts contributing to revenue including Coach, Don Don Donki, Fendi and Lululemon.

The research and design segment posted a 26 percent revenue rise to S$3.82 million, with key contributing accounts including Burberry, Gucci, the National Heritage Board and TAG Heuer.

The alternative marketing segment reported revenue dropped 33.3 percent on-year to S$1.72 million, with key contributors including Automobile Association of Singapore, National Council on Problem Gambiling, Robinson and Singapore Cruise Centre.

Employee benefits expense increased 5.8 percent on-year to S$14.70 million on increased headcount for the new attractions business, the filing said.

Other expenses jumped 54.1 percent on-year to S$4.42 million for the quarter on higher depreciation, expenses for new business areas and impairment losses on doubtful trade receivables, the filing said.

For the nine-month period, Kingsmen Creatives reported net profit fell 58.8 percent on-year to S$1.89 million on revenue of S$263.69 million, up 10.4 percent on-year.

Kingsmen Creatives was upbeat on its outlook, saying it saw good opportunities.

“[The group’s] ability to create and build unique and engaging experiences provides the group with a range of solutions that meet diverse and evolving needs of a global client base,” the company said. “With the new branded attractions up and running, the group will continue
to pursue additional intellectual property and content concepts, focusing on the three broad areas of active play, edutainment and live events.”

Kingsmen Creatives guided that it expected 2019 to be profitable.

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