New Media Lab (1284) H1 2023 earnings summary

Executive summary

• H1 revenue was HK$101.732m versus HK$104.921m; net profit was HK$3.308m versus HK$10.798m, while adjusted net profit was HK$7.291m versus HK$10.042m.

• Digital advertising contributed 95.5% of revenue; nine media brands operate across websites and social platforms.

Financial highlights

• Profit before tax was HK$4.913m versus HK$12.722m; basic and diluted EPS was HK0.74 cents versus HK2.40 cents.

• Other income and gains declined to HK$0.754m from HK$4.413m, including HK$3.812m of prior-year government subsidies.

• Employee benefit expense rose to HK$48.857m from HK$47.792m; finance costs fell to HK$2.176m from HK$2.826m.

• Operating cash inflow was HK$31.169m; investing and financing cash outflows were HK$2.113m and HK$31.465m. Cash and equivalents ended at HK$17.476m.

Outlook and guidance

• Plans include applying AI and machine learning to back-end operations and upgrading the content management system to track digital content performance.

• Priorities include improving audience targeting and ad effectiveness with data analytics, innovative content delivery, stronger client relationships, and assessing growth and value-creating opportunities.

• Long-term prospects for the digital advertising market were viewed positively.