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YuuZoo posts Q2 net loss of S$1.94m as reported revenue more than triples

YUUZOO Networks Group Corp - previously known as YuuZoo Corp - narrowed its second-quarter losses on higher revenue, according to unaudited financial results released on Monday.

The online media company posted a net loss of S$1.94 million for the three months to June 30, or 75 per cent less than the S$7.86 million in the year-ago period.

Reported revenue more than tripled from S$1.4 million to S$4.87 million, with YuuZoo attributing the surge to contributions from logistic services at a European unit acquired in September 2017, as well as sales from a Thai subsidiary.

But it added in its results statements that the lower earnings before interest, tax, depreciation and amortisation was mainly due to "restructuring and strategic alignment of its business".

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Cost of services rose by 91 per cent to more than S$1.95 million, while employee expenses swelled from S$725,000 to S$3.47 million, according to the financial results. The group said that the "steep increase" in staff costs was on the inclusion of the more than 200 employees from the new logistics unit.

These bit a chunk out of the bottom line, despite both the absence of the previous year's S$5.66 million in amortisation costs on intangible assets, as well as the paring of currency losses from S$1.1 million to S$36,000.

Loss per share came in at 0.29 Singapore cent for the quarter, down from one Singapore cent previously. No dividend was declared, unchanged from the year before.

YuuZoo reported a net loss of S$3.45 million for the six months, down from S$14.78 million the previous year, on a 75 per cent rise in revenue, to S$10.79 million.

The bourse suspended trading in YuuZoo shares in March, citing auditors' inability to give their opinion on the veracity of financial statements for the year to Dec 31, 2017. Trading remains suspended.

Audited results for that period, released in September 2018, later showed a 12-month net loss of S$101 million, against the net profit of S$2.29 million that the group had reported, while the audited revenue came in at S$18 million, against the unaudited figure of S$62.2 million.

YuuZoo is also under probe by the Commercial Affairs Department, which raided its offices in April and interviewed the company's former management staff. The police seized materials related to the financial years 2013 to 2016, the company said at the time.