iCreate Reports YTD Profit, Despite Contraction in Revenues

• Owing to an increase in other income and lower admin and other expenses, iCreate reported a profit of $3.87Mn for the nine months ended September 30, 2021, versus a net loss of $2.26Mn in the previous corresponding period. 
• The company was able to grow other income to $3.07Mn from $0.68Mn, which contributed to the improved fourth quarter. Also supporting the net profit performance was a decline in the company’s cost of sales (34.0%) and admin and other expenses (46.0%) as iCreate continues to benefit from its initiatives that include a re-alignment of the company’s cost structure. 
• However, revenues contracted (32.5%) as the company was unable to conduct physical and hands-on training, which accounts for 60% of revenues, as it did in the past. Nevertheless, iCreate continues to find new ways to generate revenues, with the video production division delivering 27.9% of total revenues. iCreate’s video production division is newly launched and the company expects to continue to see growth in the division going into 2022 as the number of Internet-only platforms, such as streaming services, is likely to increase given high demand due to ongoing restrictions on gathering. 
• iCreate’s stock price has appreciated by 45.8% since the start of the year and closed Wednesday’s trading session at $0.86 per share.

 (Sources: iCreate Financials & NCBCM Research)