Spackman narrows FY15 loss to US$1.1m on lower costs

SPACKMAN Entertainment Group narrowed its net loss to US$1.1 million, or 0.28 US cent per share, in 2015 as it trimmed costs amid a smaller slate of films released during the year.

The Korean movie production company had lost US$8.1 million in 2014.

Revenue fell 16 per cent to US$13.6 million with only one film, The Priests, released during the year compared to four in the year before.

The Priests grossed 42.4 billion won (S$48 million) at the Korean box office after its Nov 5 release date, allowing Spackman to record about US$10.56 million of revenue as presenter and investor. The rest of the group's revenue during the year came from distributing past films, producing documentaries and other business lines.

Despite the revenue decline, cost of sales shrank by an even steeper 36 per cent to US$9.9 million, allowing Spackman to post a gross profit increase to US$3.6 million from US$507,000 the year before.

Spackman executive chairman said the company is "considering plans to restructure its loss-making businesses in the coming year".

Spackman shares staged a sharp rally in February, climbing 69.5 per cent to 13.9 Singapore cents as at Friday's close from the end-January price of 8.3 Singapore cents.