May 16, 2024
One Great Studio Company Limited (1GS) for the first quarter ended March 31, 2024, reported a 21% decrease in revenue totalling $90.81 million compared to $114.94 million in the corresponding three months last year.
Cost of sales amounted to $56.07 million (2023: $54.94 million), this represents an increase of 2% year over year. Consequently, gross profit decreased by 42% to $34.74 million compared to $60.00 million for the first quarter ended March 31, 2023.
Administrative expenses increase by 19% to close at $20.78 million (2023: $17.42 million), while Operating profit decrease by 67% from $42.58 million in 2023 to $13.96 million for the three months. As a result, other income for the first quarter amounted to $2.54 million, a 125% increase relative to $1.13 million reported in 2023.
EBITDA for the three months amounted to $12.83 million, a 68% decrease relative to $39.93 million reported in 2023. Interest expense totalled $769,856 a 92% decrease from the corresponding period last year. (2023: $9.29 million).
Profit before taxation for the first quarter amounted to $10.45 million, a 63% decrease relative to $28.52 million reported in 2023.
Taxation charge for the three months was $178,986 (2023: $5.53 million). Net profit for the period for the three months amounted to $10.27 million, a 55% decrease from the $22.99 million reported in 2023.
1GS noted, “the decline in performance year over year was a result of various market factors that impacted our SEO business segment, leading to a temporary contraction. Notably, we are proactively implementing measures to adapt to the evolving landscape and capitalize on emerging opportunities.”
Consequently, Earnings Per Share for the three months amounted to $0.01 (2023: EPS: $0.02). The twelve-month trailing EPS was $0.05, and the number of shares used in these calculations was 1,693,131,075.
Notably, 1GS’s stock price closed the trading period on May 15, 2024, at a price of $0.88 with a corresponding P/E ratio of 22.45x.
Balance Sheet Highlights
The company’s assets totalled $667.17 million (2023: $523.77 million). Total asset growth was primarily driven by higher short-term investment balances closing at $223.41 million (2023: $76.52 million).
Shareholder’s equity was $602.84 million (2023: $180.96 million), representing a book value per share of $0.36 (2023: $0.11).
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