YuuZoo's Q3 profit climbs 51% despite drop in revenue

DESPITE a drop in revenue, YuuZoo Corporation managed to grow its bottom line in the September quarter thanks to a substantial cut in its cost of services.

The social media and e-commerce company reported a 15 per cent drop in revenue to S$14.6 million for the three months ended Sept 30, 2016, from S$17.2 million a year ago. It said the decrease was due mainly to a 52 per cent drop in e-commence revenue for the period.

YuuZoo, however, managed to slash its cost of services to S$2.6 million, from S$5.5 million, owing to lower payment transactions in e-commerce. Fully amortised advertisement rights also contributed to lower amortisation costs.

Its net profit attributable to shareholders was 51 per cent higher, year on year, at S$8.4 million, from S$5.6 million.

Its earnings per share were 1.20 Singapore cents, up from 0.85 Singapore cent last year.

YuuZoo shares closed 0.4 Singapore cent higher at 18.2 Singapore cents on Friday.