1GS Earnings Not So Great for 2024

1Great Studios (1GS) generated J$35.68Mn in earnings for the financial year ended December 2024 (FY2024), 54.88% lower than in FY2023 amid lower revenues. Revenues came in at J$342.20Mn, 25.75% lower than in 2023 reflecting a 39.0% decline in its SEO business line that offset a combined 19.0% growth in all other business lines.
The impact of the underperformance in the company’s revenues on operating profits was exacerbated by a slower pace of reduction in cost of sales and higher operating expenses. Cost of sales fell just 12.9%. Operating expenses increased by 10.27% to J$87.43Mn driven by material increases in salaries, wages and related costs, advertising and promotion expenses. As a result, 1GS’ operating profit of J$47.41Mn was more than half its FY2023 figure.
Non-operating costs softened the blow. Interest expense and taxation charges were markedly lower at 86.62% and 91.30% respectively, reflecting the benefits of tax exemptions from listing on the Junior Market, along with proceeds from its IPO, which helped reduce debt and interest expenses. Nonetheless, this was inadequate to offset the lower revenue and sticky operating costs. As a result, earnings fell to J$35.68Mn.
Notwithstanding the not-so-great FY2024 profits, management remains optimistic about the company’s ability to leverage its expertise and services to drive shareholder value. Given new trends within the industry, 1GS continues to diversify its product and service offerings and other revenue streams including Web & App development, which followed as the second-largest segment. Meanwhile, strategically significant yet smaller segments, Digital, Branding & Creative, and Video Production, continued to play a vital role in the company’s diversified service portfolio.
1GS’s stock price has decreased by 32.35% since the start of the 2025 calendar year and has lost 54.0% of its market value since being listed in September 2023. The stock closed Monday’s trading session at $0.46.

(Source: 1GS & NCBCM Research)