YuuZoo falls to Q1 loss of S$5.2m on higher amortisation, employee benefits

YUUZOO Corp fell into a net loss of S$5.2 million for its fiscal first-quarter from a year-ago profit of S$490,000 as employee benefits and amortisation increased.

Revenue fell 3 per cent to S$7.98 million, down from S$8.23 million in the previous corresponding quarter, dented by the decline of payment revenue, e-commerce and celebrity branded network sales, said YuuZoo, a social commerce company.

The fall was tempered by logistic service revenue recognised since Q4 2017 after the acquisition of YuuLogistic France.

Employee benefits and expenses ballooned to S$3.57 million in Q1 2018, up from just S$248,000 in the previous year due to the incorporation of 200-person YuuLogistic France into YuuZoo Group.

The company also amortised S$4.2 million of intangible assets, up from a S$2.0 million a year ago.

Loss per share came in at 0.59 Singapore cent, from earnings per share of 0.06 Singapore cent in the year-ago period.

Looking ahead, the company expects industry growth to continue to be strong in all the key areas that YuuZoo operates in, such as the social commerce, online and mobile payments, online games and mobile games sectors.

YuuPay has launched its mobile wallet solution in Nigeria and is preparing to launch it in Indonesia by Q4 2018, the company said.

Earlier this week, the firm said that it is seeking responses from independent reviewer Ernst & Young Advisory (EY) regarding a draft report by EY, which was tasked to look into certain claims and allegations against the firm. If EY does not meet a May 18 deadline given by YuuZoo to respond to the company's questions, YuuZoo said that it would contemplate "appropriate action, including but not limited to legal recourse".

YuuZoo itself is in the middle of a police probe by the Commercial Affairs Department (CAD) into possible breaches of the Securities and Futures Act. Former chairman Thomas Zilliacus resigned from his chairmanship in April, citing the investigation.

YuuZoo's shares have been suspended from trading since March 19.