- Net losses up by fivefold despite 4% revenue increase
- Singapore and Malaysia remain highest contributing markets
INTEGRATED social media solutions provider Netccentric Limited, which is listed on the Australian Securities Exchange, recorded a net loss of S$5.4 million (US$3.8 million) for the financial year ended December 31, 2016, compared to a net loss of S$1.3 million the year before. (S$1 = US$0.71)
The losses were incurred despite a 4% increase in revenue to S$12.6 million versus S$12.1 million in 2015. In a recent statement, Netccentric said that its earnings before interest and taxes (EBIT) was negative S$5.4 million due to group expansion efforts, which incurred additional administrative and employee costs.
The expenses included initial public offering and extraordinary expenses of S$1.1 million, which include a one-off impairment of goodwill resulting from the acquisition of Ripplewerkz Pte Ltd of S$0.9 million. “Loss is expected to decrease as investments that did not display exponential growth potential are scaled down,” Netccentric said.
According to Netccentric, Singapore and Malaysia remain the highest contributing markets to revenue, contributing a combined 77%. Meanwhile, Australia contributed 9%, while Thailand contributed a further 9% in revenue. The balance came from UK and China.
However, the company appeared optimistic about its newest market, Taiwan. It pointed out that in just four months of operations, the Taiwanese operations surpassed the UK’s annual revenue by 60%.
In early March this year, the company announced the appointment of Desmond Kiu as its new chief executive officer, after its original CEO and co-founder Cheo Ming Shen resigned from his position in late January.
In November last year, its chief operations officer Timothy Tiah resigned from his position to pursue other opportunities. Both Cheo and Tiah co-founded Netccentric in 2006 with US$34,000 of their own funds.
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