05 May Q1/2016: YuuZoo’s revenue and profits continue to grow at rapid pace
- Revenues jump 246% year-on-year to SGD 45.5 million EBIT jumps 190% to SGD 12.8 million
- E-commerce revenues jump 763% to SGD 28.6 million Company gives full-year forecast
Summary of financial results for three months ended 31 March:
|2016 SGD millions||2015 SGD millions||Variance (%)|
Singapore, 5 May 2016: Singapore-listed YuuZoo Corporation Limited (“YuuZoo” SGX: AFC) is pleased to announce very strong results across the board for Q1/2016. Revenues grew 246% year-on-year to SGD 45.5 million, while EBIT grew 190% to SGD 12.8 million. E- commerce jumped 763% to SGD 28.6 million.
As a result of the very strong Q1 numbers, YuuZoo is giving a full year forecast of revenue of SGD 202.8 million and EBIT of SGD 48.1 million.
In Q1/2016, YuuZoo announced its execution of an agreement with AliSports, a subsidiary of Alibaba, the largest e-commerce and payment-company in China. Through the Agreement, YuuZoo will manage and run AliSports’ eSport events throughout China. This multimillion- dollar contract reinforces the position of YuuZoo’s Chinese joint venture, YuuGames, as a leading organiser of eSport events in China.
This partnership with China’s largest e-commerce and payment company also opens the door for discussions about co-operation in YuuZoo’s other areas of activity in China, including games, social networking, e-commerce and payments.
Also in China, YuuZoo concluded the finals of Electronic Sports China Cup (“ESCC”), China’s widest nationwide eSport event and one of a series of Chinese government- sponsored eSports events that YuuGames is organising. The finals were held on March 12th – 13th at YangPu Stadium in Shanghai, and were aired live on 7 TV channels for 8 hours each day, and were watched by over 10 million people. YuuGames will also co-host this year’s installment of the ESCC, paving way for YuuGames to gain an even stronger foothold in the USD22 billion games industry in China.
In Q1/2016, YuuZoo also announced that it had acquired 30% of Infocomm Asia Holdings Pte Ltd (“IAHGames”).
IAH is a leading distributor of online and box games in Southeast Asia. During 8 years of operations, IAH has built a registered user base in Southeast Asia of over 37 million users. The company has distributed and or published leading games such as FIFA Online, Gulong Online, Grand Theft Auto, Counterstrike Online and Granado Espada. In both 2013 and 2014, it had annual revenues of over SGD 40 million. Under the now signed agreement all the game business of IAH will be transacted through YuuZoo’s e-commerce platform, adding to both YuuZoo’s revenue and bottomline.
Outlook for FY2016
Says James Sundram, CEO of YuuZoo: “Through YuuZoo’s unique partnership and franchise model, YuuZoo is positioned strongly in the social e-commerce space. YuuZoo’s strategy is to build partnerships in the world’s 10 largest markets is expected to bear immense fruit in 2016. This strategy is exemplified by the AliSport partnership and the previously announced SMG partnerships in the world’s largest market China, and the previously announced NTA and Etisalat partnerships in Africa’s largest market Nigeria. This strategy is further demonstrated by the sale of YuuZoo franchise licences in the other countries: the franchisee network currently covers 66 countries. On the back of the strong Q1 results and these signed agreements, YuuZoo is giving a FY 2016 revenue and EBITDA forecast of SGD 202.8 million and SGD 48.1 million respectively. At these estimated FY 2016 earnings, YuuZoo is currently trading at a massively discounted PE of 2.64 versus an average PE of 27.2 for e-commerce peers”, he concludes
For more information, please contact:
Chief Financial Officer
DDI: +65-6577 0654
Mobile: +65-8359 1041
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 118 million registered users and hundreds of millions of TV viewers across 164 countries, YuuZoo uniquely combines social networking, e-commerce, games and payments in a mobile-optimised, fully localised ‘Tribal Marketplace’, where the consumer can choose the Tribe to join and access hundreds of tribal and targeted social networks, shops and entertainment through one single login. All networks are by franchisees localised for each market as comes to language as well as merchandise and design. Based on this business model, unique in the digital space, YuuZoo is able to grow internationally at a very low cost. The model has consistently generated strong margins. To see the networks, log into: www.yuuzoo.com. For more information about YuuZoo, please log on to: www.yuucorp.com.
 Revenue and EBITDA forecasts are based on current transaction levels of e-commerce and payments business, contracted network sales agreements that have been or will be completed in the current calendar year, and franchise sales that have been completed in the first quarter of the year together with those further franchise sales that the Company is confident will be consummated before financial year end
 Source: Business Times 13 April 2016 “SingPost’s unlocking of value hinges on leadership” http://www.businesstimes.com.sg/companies-markets/singposts-unlocking-of-value-hinges-on-leadership