01 Mar YuuZoo Reports EBITDA Of SGD 28,7 Million for FY 2017, Profitable Operations in France Generate Positive Operating Cashflow for the Company for Q4 2017
- YuuZoo Corporation today announced its unaudited results for FY 2017
- In spite of a decline in revenue, the EBITDA for the year reached SGD 28,7 million
- Profitable operations of the new YuuLog France subsidiary generated a positive operating cashflow of S$0.4 million in Q4 2017 for the Group
- Successfully completed negotiations on the acquisition of assets in France resulted in a Q4 increase in other income from S$159k in Q4 2016 to S$8.0 million in Q4 2017
Summary of financial results for three months ending 31 December:
Summary of financial results for financial year ending 31 December 2017:
Singapore, 1 March 2018: Singapore-listed YuuZoo Corporation Limited (“YuuZoo” or “the Company”) (SGX: AFC) today announced that the Company in Q4 2017 showed a positive cashflow of S$0.4 million. The quarter also showed a net operating cash inflow of S$0.5 million in cash generated from operations, compared to a S$ 4.9 million cash outflow in in Q4 2016. This was mainly caused by the profitable and cashflow-positive operations of YuuZoo’s new French digi-logistics subsidiary YuuLog France.
YuuZoo’s other income grew from S$159k in Q4 2016 to S$8.0 million in Q4 2017, as a result of successful completion of asset acquisitions in France related to the formation of YuuLog France. The Group’s total current assets also increased from S$16.2 million as at 31 December 2016 to S$19.2 million as of 31 December 2017 mainly due to the increase in trade receivables.
The Company posted a revenue in Q4 2017 of SGD 9.7 million, a decrease from corresponding period in 2016 mainly caused by reduced non-cash revenue in the form of lower sales of franchise licenses and celebrity branded networks.
While almost all of YuuZoo’s franchise operations that have launched generated a positive cashflow for YuuZoo in 2017, the growth for most franchisees was lower than forecasted. While the Company maintains its view that the ultimate success of failure of a franchisee cannot be determined before a minimum of 3 years of live operations, the Company has, in line with the significantly more conservative revenue recognition policies adopted in 2017, decided to impair 50% of the balance sheet value of those franchisees that fell behind the expected growth numbers. As a result of these impairments, the Group’s FY 2017 net profits decreased to S$ 2.1 million.
For FY 2018, the Company expects both revenue and net profits to grow. The industry growth is projected to continue to be strong in all key areas YuuZoo traditionally operates in: tribal social networking, eCommerce, online and mobile payments and mobile games. The addition of new services such as streaming video, digi-logistics and smart-city eservices are expected to add to the revenues and profits of the Company.
On 26 October 2017, YuuZoo announced that Thailand’s Board of Investments (BOI) has granted the Company an 8-year tax holiday on all its profits derived out of Thailand. With this being granted, the company has split its head office functions between Thailand, China and Singapore. This move not only provides YuuZoo with new benefits, but also facilitates growth across more markets and regions.
Also in 2017, YuuZoo announced that it has signed with Vinculum, a leading software company enabling multi-channel retailing, to use their order management and fulfillment software and to leverage their extensive network of partners and suppliers. YuuZoo joins the list of integration partners of Vinculum such as global powerhouses Amazon, eBay, Lazada, as well as, distinguished clients of Vinculum like Naykaa, Johnson & Johnson, Shoe Mart, Ralali, Pazia, Popular Bookstores etc. The agreement with Vinculum will help all sellers/ brands/ retailers serviced by Yuuzoo to sell globally, with the readily available channel integration to marketplaces, front end tools and logistics companies.
In October, YuuZoo announced the launch of Tribe Nation in India. Tribe Nation is an app that allows consumers to subscribe and directly buy fresh and farm-grown products from rural farmers. The launch was followed by an event headlined by a popular Indian singer, which saw an attendance of more than 10,000 people at the launch event. The first-of-its-kind app in India aims to bridge the gap between the rural and urban communities. Tribe Nation is the strategic extension following YuuVillage’s launch with iComp Digital Media (YuuZoo’s Indian franchisee for Tribe Nation) in March, for India’s rural population. Through the YuuVillage platform, local farmers can bypass the middleman and sell directly to end consumers, ensuring sustainability of local farmers. Tribe Nation, which functions as a competitive ‘supermarket’, offering products at lower prices than existing market rates, for extended periods of time. With farmers experiencing challenges with retailing their produce – such as not getting the right price for their produce, lack of knowledge on market demand and exploitation by middlemen – Tribe Nation seeks to empower local farmers and rural villagers to become competitive business owners and traders.
YuuZoo in 2017 also announced its new European joint venture, which acquired the business and key assets of Cinram France, France’s leading entertainment sector logistics company. With this, the Company gears up from being a social commerce marketplace operating primarily in the developing world, to becoming a complete end-to-end eCommerce player in the huge European eCommerce market; from ordering of products on YuuZoo’s platform to online payments and order fulfilment. With the combined expertise and capabilities of YuuZoo, YuuPay and YuuLog France, the Company will replicate this model in its operations in Africa.
On 13 December 2017 it was announced that YuuGames, YuuZoo’s eSport operation in China, spearheads Digital Gaming in China by setting up the largest O2O NBA-style eSports league. YuuGames will aim to have 3,000 cafes forming the core teams, and over three years will target 8 million active users. The game cafes feature several promotional avenues, such as competitions, videos, pageants and championships. Around the core group of cafes, YuuGames will also target 20,000 cafes that host 30 million members by installing its “Yueba” mobile app for participation in various events.
On December 21st 2017, the Company announced the signing of a major new agreement with state-owned Harbin Water Investment Group Co Ltd in Harbin, China. Harbin Water Investment Group Co Ltd is the company that manages and controls all water-linked land in Harbin. Under the framework agreement, YuuZoo will develop an 85 hectares large river-fronting area of land located on a prime upmarket new development area earmarked by the local government for high-end residential, commercial, tourism, education and sports real estate development. The project integrates YuuZoo’s wide area of eServices such as eCommerce, ePayments, Social Networking and eManagement with a “smart city” concept.
Listed on the mainboard of the Singapore Stock Exchange (SGX: AFC), YuuZoo has offices in France, China, Nigeria, Thailand and Singapore. YuuZoo has built a mobile and online technology platform on which several in-house developed products in a unique, and for each market fully localised manner, offer hundreds of vertical social networks, eCommerce, gaming, video and payments. Through a global network of franchisees and marketing partners, the services cover several countries in Asia, Africa and Europe with a combined population of more than 4 billion. To see the YuuZoo platform and learn more about the company, log on to: http://www.yuuzoo.com.
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