Cityneon's full-year profit more than doubles on IP rights contributions

"We are on the right track to grow, barring any unforeseen global calamities," said Cityneon's executive chairman and group CEO Ron Tan.
"We are on the right track to grow, barring any unforeseen global calamities," said Cityneon's executive chairman and group CEO Ron Tan.PHOTO: CITYNEON

SINGAPORE - Mainboard-listed Cityneon Holdings' fiscal 2017 full-year net profit more than doubled to S$17.39 million from S$6.68 million last year, the events and exhibitions firm announced late on Tuesday night (Feb 27).

Earnings per share stood at 7.1 Singapore cents for fiscal 2017, up from 2.8 Singapore cents in the year-ago period.

No dividend has been declared for the current financial period, unchanged from the preceding year.

In addition, the group's revenue rose 20.7 per cent to S$116.74 million for the year, compared against S$96.75 million last year.

While revenue from its other segments fell, this was more than offset by an increase in revenue from the group's Intellectual Property Rights (IPR) business unit.

Notably, revenue from the IPR unit almost tripled to S$50.7 million for the year. This surge was mainly derived from contracts entered during the year - including the opening of Marvel's Avengers Station Exhibitions in Taipei, Beijing and Russia, as well as the opening of the group's Transformers Autobots Alliance Exhibition in Chongqing, China, Cityneon said.

As at Dec 31, the group's net asset value was S$82.9 million.

In November last year, Cityneon also announced that Hong Kong-listed Teamway International Group Holdings might make a chain offer for Cityneon if it takes a majority stake in Cityneon's majority shareholder, Lucrum 1 Investment.

In a separate filing to the Singapore Exchange on Tuesday, Cityneon said that the memorandum of understanding entered into between Mutual Power International, an indirect wholly owned subsidiary of Teamway International, and Massive Rights Investments has been terminated "with mutual consent" on Feb 27.

Looking ahead, the company will continue to expand its suite of "design and build" services, especially for the upcoming 2020 World Expo in Dubai.

Said executive chairman and group CEO, Ron Tan: "We are on the right track to grow, barring any unforeseen global calamities. We have put in place the financing, and will make strategic decisions and continue to explore new business development opportunities including mergers and acquisitions activities to enhance our shareholders value."

He added: "The group has continued plans to invest in new exhibition travelling sets, and seek new intellectual properties. Going forward, we will continue to align the group's traditional core business with that of the IPR business."

Shares in Cityneon traded 3.77 per cent, or four Singapore cents higher to close at S$1.10 apiece on Tuesday. Some 2.05 million shares changed hands.