Temasek-linked directors of One Championship resign

TWO Temasek-linked directors of One Championship, Derek Lau and Fock Wai Hoong, recently resigned from the board of the Mixed Martial Arts (MMA) outfit, according to regulatory filings of its business entity Group One Holdings.

Mr Lau, who is chief executive of Temasek unit Heliconia Capital Management, resigned from the board of One Championship, in mid-April. Mr Fock, a managing director at Temasek, subsequently resigned in end-April.Temasek and Heliconia declined to comment on the matter. In a statement on Monday evening, One Championship president Teh Hua Fung said: "As part of our plans for a public listing, we are taking a number of technical steps to ensure that we have the right governance structure in place for various jurisdictions, including the US." He added that Temasek and Heliconia "remain fully engaged and supportive" of the company's strategic direction. Mr Lau had joined One Championship's board back in 2016, after Heliconia invested in the company. Mr Fock was more recently added to the board in July last year. A month earlier, One Championship had announced a US$70 million fundraise, joined by existing investors Temasek and Sequoia. The company also simultaneously axed a fifth of its headcount.

The high-profile departures come as One Championship has been badly hit by Covid-19 restrictions. The company is now trying to break through into reality television with its version of The Apprentice, although there is scepticism over its past financial performance and future prospects.

For FY2019 ended December, Group One Holdings posted a net loss of S$129.5 million for 2019 ended December, 57.7 per cent steeper than from the previous year.

Revenue rose 66.8 per cent to S$62.4 million for the year. This was driven primarily by broadcasting revenue more than doubling year-on-year to S$45 million, while ticketing revenue similarly more than doubled to S$2.4 million. However, its bottom line was hit mainly by steep costs. Marketing expenses rose 46.4 per cent to S$72.2 million, while administration and other expenses rose 47.9 per cent to S$61.5 million.

Cash burn was also significant, as the entity recorded S$136.6 million in net cash used in operations for 2019, more than 1.7 times the S$78.5 million figure from a year ago. The company had S$73.3 million in cash as at end-2019, down 61.3 per cent from a year ago.