2 months ago
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The Limners and Bards Limited, also called The LAB, spun from profit of $23 million to a loss of $1 million for the April second quarter on lower revenue.
“This was due to a higher proportion of revenue being derived from media, which typically carries lower margins relative to the agency segment. This shift in revenue mix also resulted in a 2.0 per cent decline in the company’s net profit margin,” said CEO Kimala Bennett in the company’s report to shareholders.
Revenue for the quarter fell 23 per cent year-on-year to $174 million.
Over six months ending April, the company made $20.6 million in net profit, which underperformed the prior year by 58 per cent.
The decline in earnings came amid an uptick in half-year revenue, which grew by three per cent. The improvement was driven primarily by increased activity in the production and media business segments, said The LAB, which indicated that media services contributed $240.7 million to revenue, production activities, $151.8 million, and agency services, $67.5 million.
“Despite ongoing macroeconomic uncertainty, 2025 has presented key opportunities for us to advance several critical initiatives. Our revenue expansion strategy includes the rollout of our ‘Five-in-25’ content plan, which focuses on the development of five scalable content properties, the geographic expansion of our agency and production services, and the monetisation of existing financial and intellectual assets to enhance top-line growth,” The LAB said in its report to shareholders.
“As part of its long-term strategy to reduce revenue volatility and deepen brand equity, the company has begun investing in its proprietary events,” the report noted.
The Five-in-25 plan involves the release of five original feature films by this year, 2025.
Chairman of The LAB, Steven Gooden, noted in the financials that despite near-term margin pressure, the company remains on track with its transformation.
“We are maintaining a strong emphasis on cost discipline and efficiency … alongside scaling creative outputs,” Gooden said.
As part of its cost containment strategy, The LAB is integrating artificial intelligence into its operations.
English (US) ·