1GS books quarterly loss on higher spend to merge DRT

One Great Studio Limited, 1GS, posted a $13-million net loss for the first quarter ending March 2025, a sharp reversal from the $10-million profit recorded a year earlier.

The company serviced 87 clients during the quarter, with half based in the Caribbean, and one third in North America. Each client spent, on average, $876,000, according to the financials.

That said, total revenue fell by 16 per cent to $76 million for the quarter. 1GS said that despite the falloff in revenue “the current trajectory signals an international investment phase, focused on diversifying income streams, enhancing operational scale, and building the foundation for sustained profitability and shareholder value”.

The listed firm indicated that the profit decline stemmed from team expansion, and the integration of newly acquired DRT Communications into its operation, which drove administrative expenses up 42 per cent to $29.5 million.

DRT offers public relations and promotional services for corporate clients. 1GS operates an advertising and marketing agency for corporate clients. The acquisition would reduce 1GS’ reliance on search engine optimisation, or SEO, a service that increases audience reach for websites and social media pages.

“Our acquisition of DRT is already delivering value and expanding our services and new client relationships,” 1GS reported to shareholders.

During the quarter, non-SEO services surpassed SEO revenue “for the first time”. This shift reflected wthe early pay-off of its acquisition strategy, as DRT Communications added 21 new clients and expanded media monitoring capabilities.

“1GS is entering this new phase with confidence, reinforced by a more capable team, diversified revenue streams, and a clear strategic growth plan across our house of agency brands,” the company said.

Cash holdings and short-term investments declined to $172 million from $274 million a year earlier, with $80 million deployed for the DRT purchase. The balance of the DRT purchase price, up to $70 million, is contingent on performance. The value of the deal, $150 million, was announced in February.

1GS remains bullish on its outlook, citing cross-selling opportunities from DRT’s integration and untapped Caribbean demand.

steven.jackson@gleanerjm.com