Spackman reverses to US$2.2m loss for FY2018 on absence of one-off

SPACKMAN Entertainment Group swung to a US$2.2 million loss for the year ended Dec 31, from US$3 million profit a year ago, as the absence of a one-time gain outweighed higher revenue.

Loss per share was 0.27 US cents, compared to earnings per share of 0.65 US cents in FY2017. Its last done price at 9.18am on Thursday was flat at S$0.023.

No dividend was declared for FY2018, as with FY2017.

Revenue for FY2018 rose six per cent to US$21.8 million from US$20.6 million a year ago. It was mainly derived from the distribution of films (30 per cent) and production of films and others (40 per cent).

In total, the distribution and production of films made up 70 per cent of revenue, down from 85 per cent in FY2017.

Other income fell 85 per cent to US$477,000 from US$3.1 million previously, as there was an absence of a non-recurring gain of US$2.7 million in FY2017 on partial disposal of 497,250 shares of associated company Spackman Media Group Limited (SMGL), as part of the purchase consideration for the acquisition of Frame Pictures.

In December 2018, Frame Pictures secured three major camera equipment deals for three upcoming drama series. Spackman believes Frame Pictures will continue to win project bids and tap on the growing camera equipment leasing markets, ahead of its planned listing as a combined standalone entity with its majority-owned post-theatrical business, Novus Mediacorp Co.

During 2018, the group increased its shareholding in its 43.88 per cent associate SMGL. Spackman said that by leveraging SMGL's portfolio of artists, it will be able to "participate in top tier content projects, strategically invest in collaborative businesses and strengthen its foothold in drama production".