October 3, 2022
iCreate Limited (ICREATE ) for the six month ended June 30, 2023 reported a 41% decrease in Revenue totaling $43.79 million compared to $74.68 million in the corresponding period last year. Revenue for the second quarter had a 59% decrease to close at $13.98 million compared to $34.50 million for the comparable quarter of 2022.
Cost Of Sales amounted to $12.77 million (2022: $28.03 million), this represents a decrease of 54% year over year. Consequently, gross profit decreased by 34% to $31.02 million compared to $46.65 million for the six-month ended June 30, 2022. The company booked gross profit of $9.87 million for the second quarter versus $22.59 million reported for the similar quarter of 2022.
Administrative & General Exp increased by 167% to close at $41.69 million (2022: $15.61 million), while Depreciation & Amortization increased by 34% from $3.38 million in 2022 to $4.54 million in the period under review. As a result, total operating expenses for the six-month ended June 30, 2023 amounted to $153.72 million, a 709% increase relative to $18.99 million reported in 2022.
Operating Loss before tax for the six-month ended June 30, 2023, amounted to $122.68 million relative to a profit of $27.67 million reported in 2022. Operating Loss before tax for the second quarter amounted to $126.23 million (2022: Profit of $6.90 million). Finance and Policy Costs totalled $13.47 million a 383% increase from the corresponding period last year. (2022: $2.79 million).
Loss before taxation for the six-month ended June 30, 2023, amounted to $136.16 million relative to profit before taxation of $24.88 million reported in 2022. Loss before tax for the second quarter amounted to $138.67 million (2022: profit before tax of $6.39 million).
Net Loss for the six-month amounted to $136.16 million, relative to net profit of $24.88 million reported in 2022. For the second quarter, Net Loss after tax was $138.67 million (2022:net profit of $6.39 million).
Consequently, Loss Per Share for the six-month amounted to $0.14 (2022: EPS of $0.03), while Loss Per Share for the quarter totaled $0.15 (2022: EPS of $0.007). The twelve-month trailing LPS was $0.22 and the number of shares used in these calculations was 949,685,242. Notably, ICREATE ‘s stock price closed the trading period on October 02, 2023 at a price of $1.03.
iCreate noted “During the second quarter, the company achieved another key milestone in executing its growth and expansion strategy by operational control of Visual Vibe.com Limited (Visual Vibe), a digital out of home (DOOH) advertising company. With the previous purchase of 51% equity interest GetPAID Group Limited in January 2022, Visual Vibe becomes the second operating subsidiary within the iCreate group of companies. These transactions provide the platform for growth through expanded revenues and cash flows.
Balance Sheet Highlights
As at June 30, 2023, total assets increased 302% to close at $690.09 million (2021: $171.47 million). The increase was largely due to the increase in ‘Goodwill’ which closed at $509.85 million (2022: nil).
Shareholder’s equity was $319.03 million (2022: $61.14 million), representing a book value per share of $0.34 (2022: $0.06).
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.
