Lower Expenses Support Improvement in iCreate’s Net Profit

• iCreate Ltd’s net profit for the 6-months ending June 2021 grew by 43.8% year over year to $4.44Mn on the back of growth in other income and a decline in expenses.
• Other income improved to $5.40Mn from $30K the same period last year, while admin and general expenses fell by 34.4% (or $7.16Mn). The earnings growth was also supported by a decline in finance costs and cost of sales by 25.3% and 37.5% respectively.
• The performance was however tempered by a 39.2% drop in revenue due to the non-resumption of programs such as its Creative Training Certification which depends on practical and hands on training.
• As revenues remain below pre-pandemic levels, the company has announced several initiatives to pivot and grow. These include the addition of a new business division, iCreate Agency, which will serve as a production agency that will focus on video production, Reggae Sunsplash and other multi-media production-related activities. It also acquired an e-commerce company Mobile Edge, and entered into the commercial real estate segment through its subsidiary Creative City Subsidiary. If the company is able to generate revenues efficiently from these new activities and businesses, it could realize greater and consistent profitability in the future.
• iCreate’s stock price has appreciated by 47.8% since the start of the year and closed Tuesday’s trading session at a price of $0.87 per share.

(Source: iCreate Financials & NCBCM Research)