September 27, 2023
One Great Studio Company Limited (1GS) for the six months reported a 173% increase in Revenue totaling $235.45 million compared to $86.25 million in the corresponding period last year. Revenue for the second quarter had a 187% increase to close at $120.51 million compared to $42.02 million for the comparable quarter of 2022. 1GS noted, “This increase was primarily driven by the SEO business line which contributed $91.2 million for the period. The Web & App Development segment represents the second largest revenue earner, which continues to grow and improve year-over-year.”
Cost of sales amounted to $112.82 million (2022: $35.59 million), this represents an increase of 217% year over year. Consequently, gross profit increased by 142% to $122.63 million compared to $50.66 million in 2022. The company booked gross profit of $62.64 million for the second quarter versus $22.98 million reported for the similar quarter of 2022.
Administrative expenses increased by 46% to close at $40.70 million (2022: $27.81 million), while Operating profit increased by 259% from $22.85 million in 2022 to $81.93 million in the period under review. Other income for the six months amounted to $2.21 million, relative to a loss of $471,707 reported in 2022.
EBITDA for the six months amounted to $84.14 million, a 307% increase relative to $20.66 million reported in 2022. EBITDA for the second quarter amounted to $44.21 million (2022: $6.91 million).
Depreciation and amortization for the six months totalled $4.28 million relative to $1.13 million reported in the prior year. Interest expenses totalled $18.80 million (2022: $580,531).
Profit before Taxation for the six months amounted to $61.07 million, a 222% increase relative to $18.95 million reported in 2022. Profit before Taxation for the second quarter amounted to $32.55 million (2022: $5.77 million).
Taxation charge for the six months amounted to $10.93 million (2022: $4.04 million). Net profit for the six months amounted to $50.13 million, a 236% increase from the $14.91 million reported in 2022. For the second quarter, net profit was $27.14 million (2022: $4.54 million).
Consequently, Earnings Per Share for the six months amounted to $0.03 (2022: EPS: $0.01), while Earnings Per Share for the quarter totaled $0.02 (2022: EPS: $0.003). The twelve-month trailing EPS was $0.04, and the number of shares used in these calculations was 1,693,131,075.
Notably, 1GS’s stock price closed the trading period on September 27, 2023, at a price of $1.09 with a corresponding P/E ratio of 29.23x.
IGS highlighted, “With the IPO behind us, our focus will now be on the execution of our medium-term growth strategy, which involves recruiting key talent to support the company’s sales and business development strategies. Upon the full integration of the SEO business line, along with cross-selling of current service offerings between new clients obtained from HVSEO, these will enable us to drive growth in our topline and bottom line.”
Balance Sheet Highlights
The company’s assets totalled $552.35 million (2022: $93.93 million). This was mainly attributed to a $337.38 million increase in intangible assets to total $338.44 million.
Shareholder’s equity was $251.93 million (2022: $47.05 million), representing a book value per share of $0.15 (2022: $0.03).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.