New Media Lab (1284) H2 2024 earnings summary

Executive summary

• FY2024 revenue was HK$207.2m and net profit HK$13.5m, both below 2023; digital advertising remained the main revenue source at 96.2% of total.

• Recommended final dividend of HK2.5 cents per share; interim and final dividends total HK4.17 cents per share for FY2024.

Financial highlights

• Revenue HK$207.227m vs HK$220.885m; profit before tax HK$14.399m vs HK$18.870m; net profit HK$13.491m vs HK$14.525m.

• Basic and diluted EPS HK2.2 cents vs HK2.8 cents.

• Other income and gains rose to HK$6.543m from HK$4.430m, including bank interest income of HK$5.293m vs HK$3.033m.

• Income tax expense declined to HK$0.908m from HK$4.345m.

Outlook and guidance

• Advertising spending is expected to remain tight as advertisers adjust strategies and promotional channels; focus remains on operating efficiency and investment in digital talent, innovation and technology.

• Positive on opportunities from recovering market momentum and long-term online advertising growth, citing Shenzhen visitor foot traffic, US rate cuts and government stimulus measures.