SINGAPORE (Aug 11): ZICO Holdings announced earnings of RM1.9 million ($0.6 million) for the 2Q17 ended June, doubling from its earnings of RM1 million in 2Q16 on higher revenue.
This brings the group’s 1H17 earnings to a total of RM3.4 million, up 16.9% from its earnings of RM3.3 million in 1H16.
Group revenue grew 38% over 2Q17 to RM22.1 million from RM16 million a year ago, led by increased contributions from corporate finance and business advisory services from the group’s Advisory and Transactional Services (ATS) segment.
In particular, higher revenue contributions were seen from the corporate finance advisory services under ZICO Capital, while business advisory services under ZICOInsource and investor services under B.A.C.S. in Singapore boosted ZICO’s topline by RM6.5 million.
Management and Support Services business & Licensing Services (MSSLS), however, saw a 6.9% decrease in revenue to RM5.4 million from RM5.8 million previously due to a change in invoicing arrangements.
Other income increased by RM0.4 million mainly due to higher reimbursements and foreign exchange gains arising from the fluctuation of foreign currencies.
As at end June, the group’s cash and cash equivalents amounted to RM25.8 million.
“We are pleased to have achieved good revenue growth for the quarter as we continued to closely integrate our professional services and leverage on cross selling opportunities. In particular, we are pleased that ZICO Capital, our main contributor to the ATS segment for 2Q2017, has successfully launched two IPOs, thereby lifting the group’s revenue,” says managing director Chew Seng Kok.
“We have also seen contributions from other business advisory services by ZICOInsource and investor services under B.A.C.S. We will remain proactive in bringing together complementary services to further enhance our value-added capabilities.”
Shares in ZICO closed flat at 28 cents on Friday.
