|Wednesday, 20 June 2018, 21:45 HKT/SGT|
|Builds on Listing on GEM of SEHK to Increase Penetration of Online Advertising Market in Southeast Asia|
HONG KONG, June 20, 2018 - (ACN Newswire) - Stream Ideas Group Limited ("Stream Ideas" or the "Group"; Stock Code: 8401), a digital media company that specialises in providing online advertising services to brand owners and advertising agencies in Hong Kong, Taiwan, Malaysia and Singapore, today announced its results for the year ended 31 March 2018 ("FY2017/18", "the review year"), the first annual results since its listing on GEM of The Stock Exchange of Hong Kong Limited ("SEHK") on 28 March 2018.
During the review year, the Group's revenue rose by 9.9% to HK$28.9 million (2017: HK$26.3 million). Gross profit after reversal of JAG Points moderately rose to HK$19.2 million, while gross profit margin was maintained at 66.5% despite the higher cost of sales incurred from the Group's entry into new markets and a decrease in reversal of JAG points during the year. After taking into account the initial investment made in new markets, the Group was able to achieve adjusted net profit of HK$9.5 million (excluding one-off listing expenses of approximately HK$19.3 million and one-off non-cash fair value loss on convertible bonds of approximately HK$16.5 million) (2017: HK$12.3 million).
Mr Garlos Lee, Executive Director of Stream Ideas said, "We are delighted that Stream Ideas listed its shares on GEM of the SEHK this year, which is a significant milestone in its development. Moving forward, we will continue further penetration of the online advertising market in Southeast Asia, building on our successful entry in the Malaysia and Singapore markets."
Social Viral Service
Via the Group's platforms, social viral service shows clients' advertising content in the form of videos, images and website links to members matching with the demographics of clients' target audience. During the review year, revenue from social viral service was HK$17.0 million, accounting for 58.6% of the Group's total revenue, and gross profit margin was stable at 64.8%.
Engager service helps clients achieve their marketing objectives by engaging the Group's members, who are a client's target audience, to take part in that client's advertising campaign by completing certain missions to receive JAG Points. Due to increasing demand among advertisers to engage target consumers, revenue from engager service increased by a significant 38.9% to HK$9.1 million and gross profit margin of the business was 63.0% for the year ended 31 March 2018.
Mass Blogging Service
Mass blogging service allows members to try out and review clients' products or services and share their feedback with friends on social media platforms. Through this service, clients can benefit from word-of-mouth marketing, using peer influence to sway and shape consumer interest and purchase intention. During the review year, revenue from the business decreased slightly to HK$2.1 million, mainly due to a decline in project number. Gross profit margin was 64.3% for the review year.
By market, the Group has well-established presence in Hong Kong and Taiwan, and during the review year, has made successful entry into the Malaysia and Singapore markets. It has accumulated over 560,000 members in all in the four markets at the end of the review year. During the review year, revenue from the Hong Kong market was up by 24.4% year-on-year from HK$13.1 million to HK$16.3 million, making up 56.3% of the Group's total revenue. As for the Taiwan market, revenue was stable at HK$11.9 million, accounting for 41.0% of the Group total revenue. The two new markets, Malaysia and Singapore, also contributed revenues and managed to attract more members during the review year.
In recent years, retailers are increasing their budget for online advertising to allow them to enhance brand value and exposure, as well as drive sales among the steadily growing global Internet and mobile device user population. As a result, the online advertising industry will be expanding fast in Hong Kong, Taiwan, Singapore and Malaysia in the near future. Moreover, the online advertising industry is still relatively fragmented in these markets, which means the Group has significant room to grow in them and enlarge its market share.
Looking ahead, the Group will continue to enhance the user interface and functionality of its mobile applications and websites, work with more brands that have significant market influence, and continue to strengthen presence in the Malaysia and Singapore markets. To help it achieve those objectives, the Group will recruit more talent, especially to support business development, and build a yet more competent workforce. This will in turn enable the Group to better satisfy the ever-changing needs of various industries, as well as those of existing and potential clients. In addition, the Group will focus on enhancing its membership base in terms of age group, interest and lifestyle preference, so that it may attract more clients with a more diverse target audience base.
Mr Garlos Lee emphasised, "Capitalising on the promise of a booming online advertising industry, we will continue to boost our core competitive strengths, such as, our strong membership base and reputable clientele built over the past decade, to maintain our market leadership and continue to strengthen our presence in the Malaysia and Singapore markets. Moving forward, we will also explore cooperation and acquisition opportunities where suitable in the pursuit of growth, as well as keep looking for new opportunities to reach more potential clients, thereby enhance the Group's overall profitability and create greater value for shareholders. We will stay true to the vision of becoming the preferred online marketing partner of advertising agencies and brand owners."
About Stream Ideas Group Limited
Founded in Hong Kong in 2010, Stream Ideas is a digital media company that specialises in providing online advertising services to brand owners and advertising agencies in Hong Kong, Taiwan, Malaysia and Singapore. It helps clients deliver marketing information more effectively on the interactive Platforms it operates. The Group offers online advertising services, namely (i) social viral service; (ii) engager service, and (iii) mass blogging service. As at 31 March 2018, the Platforms have over 560,000 members in the four geographical markets of the the Group.
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June 20, 2018 21:45 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Daily News, Advertising, Digital
From the Asia Corporate News Network
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