Asiaray net loss widens to $113.7m in H1 2021
This is because its new projects were still at the ramp-up stage, on top of the pandemic-related challenges.
Asiaray Media Group’s net loss widened to $113.7m in the first half of 2021 from $47.8m in the same period last year despite a 52.8% increase in revenues.
Asiaray said the impact of COVID-19 was “less severe” compared to 2020, noting that it secured several new projects during the period amidst improving conditions in Mainland China and Hong Kong, posting a revenue of $983.7m during the first half of 2021, compared to $643.7m in the same period last year.
It also noted that combined revenue, which includes consolidated revenue and revenue from all associated companies, amounted to $1.37b in the first half from $953.9m in the same period last year.
“However, since a number of newly awarded projects were still at the ramp-up stage, and owing to the impact of accounting standard IFRS16 on new projects and ongoing challenges pertaining to COVID-19, the Group incurred a net loss of HKD 113.7 million,” it said.
The group said that it remained in a net cash position for the seventh consecutive year with total cash and bank balances of $360.4m, “representing a sufficient capital for further expansion.”
The airport business is still the group’s major operational focus and main revenue contributor with an increase of 9.5% in the segment to $379.9m in the first half from $346.9m in the same period last year. Its metro and billboard segment also saw a 58.9% year-on-year increase in revenue in the first half to $353.7m.
Vincent Lam, chairman and executive director of Asiaray, said online and offline (O&O) media strategy will remain as the principal focus of the group “to capture the market trend and an area of expertise that will pave the way to fresh opportunities.”
“The group will fully utilize its capabilities and ample experience to capitalize on this rising trend. With its successful track record of delivering impactful O&O initiatives combined with ongoing investments in relevant technologies, we will be able to exceed the expectations of clients as they enhance engagement with their target audiences,” Lam said.
“This will enable the group to further build trust with such clients, enhance its financial wellbeing through higher profit services, and reinforce its leading market position,” he added.
The group also said that it is optimistic about its business development in Mainland China as people there have adjusted to the new normal, whilst it sees socioeconomic activity in Hong Kong to return to normal in the second half.
It said that it is well equipped to offer various marketing options to enhance audience experiences in Hong Kong with increasing market penetration and new media sources, and it will continue to invest in technologies including those that will expedite digitisation.