July 23, 2020
The CEO and Founder of The LAB, Kimala Bennett spoke to the financial performance of the Company. The LAB recorded revenues of $631.8 million for FY2019, 31% above $483.2 million booked in FY2018 resulting in a 52% increase in net profit to $94.75 million (2018: $62.31 million). The revenue performance for the agency segment was up 27% to $113.80 million (2018: $89.52 million), media segment increased 27% to $292.29 million (2018: $231 million) and the production segment rose 39% to $225.76 million (2018: $162.67 million). For the six months ended April 2020, revenue increased 41% to $471.42 million (2019: $334.48 million) which translated to a 20% increase in net profit to $86.67 million (2019: $72.14 million).
Kimala Bennett also stated the three strategic pillars of the LAB:
- Acquisition: “While we had identified a potential acquisition target over the last financial year, the Management and the Board were unable to sign off on the terms of the transaction. We however continue to actively search for other opportunities as acquisitions remain a key pillar of our growth objective.”
- Equipment: “In alignment with our strong focus on quality, we continued to invest in technology and other capital equipment which allow us to provide best in class services globally.”
- Regional Expansion: “In Q4 of 2019, the LAB secured two major contracts in Trinidad. In addition to our direct efforts at regional expansion, the LAB also focused on leveraging relationships with existing clients that have a strong presence across the Caribbean and Latin America. We recruited regionally based team members, thereby deepening our regional footprint.“
Ms. Bennett also noted that the company created a COVID-19 plan with the scenario mapping in March 2020. A COVID-19 Committee implemented a three-pronged strategy focused on: Health and wellness, technological support, and cost containment. She also stated that, “in conjunction with our IT Partner and team, we reviewed our operational requirements and retooled for the seamless integration of our workflow using a digital model. Consequently, 100% of our team is equipped and trained to work from home.” Moreover, Ms. Bennett also stated that LAB, “created COVID friendly film production protocols and a range of services that yielded new opportunities both locally and regionally.”
In addition, the LAB continues to focus on investing in human capital. Ms. Bennett stated that, “we retained a HR Consultant who supports the development of a corporate culture that retains top tier and ensures compliance.” Furthermore, the LAB continues to invest in high performers through ongoing training, global benchmarking, and exposure to top industry masterminds and events such as AD week.
Looking ahead, CEO, Kimala Bennett shared that the LAB is to officially launch its “Scope Caribbean” initiative in November 2020. She stated, “we have completed the build out of ScopeCaribbean.com. The site facilitates remote casting, and location scouting from any Caribbean island.” This will reduce the time for casting as persons will be able to upload pictures, videos, and voiceovers to this website.
Notably, the CEO outlined the Company’s 2025 road map. She stated that the LAB’s vision is, “to become the number one integrated advertising agency and production company in the region, recognized and respected internationally.” The road to get there entails:
- Strong focus on quality: excellent creative outputs.
- Expansion into new markets: growth in different markets and service segments
- Technology and Disruption: leveraging technology to innovate and disrupt product and service delivery.
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