Financial Highlights 

• Revenue increased by 6.3% to HK$2,493.2 million
• Profit from core operations increased by 115.4% to HK$173.8 million
• Profit attributable to owners of the Company increased by 46.7% to HK$101.1 million
• Recommended Interim dividend of HK2.0 cents
  
  

*Before a change in remeasurement of contingent consideration 

(Hong Kong, 30 June 2023) Pico Far East Holdings Limited (‘Pico’, ‘the Company’ or ‘the Group’, Stock code: 752.HK), a leading global total brand activation company, today announced its 2023 interim results for the 6 months ended 30 April 2023.

Group revenue for the six months ended April 30, 2023 was HK$2,493.2 million (2022: HK$2,344.7 million), a 6.3% increase compared with the previous corresponding period. Profit from core operations was HK$173.8 million (2022: HK$80.7 million), a 115.4% increase compared with the previous corresponding period. Though revenue grew only moderately, the stable footing of core operations led to a substantial increase in profitability.

Profit attributable to owners of the Company was HK$101.1 million (2022: HK$68.9 million), a 46.7% increase compared with the previous corresponding period.

Basic earnings per share was HK8.17 cents, compared to HK5.56 cents in the previous corresponding period.

The Board recommends payment of an interim dividend of HK2.0 cents per ordinary share for the six months ended April 30, 2023 (six months ended April 30, 2022: nil).

Between November 2022 and April 2023, major markets around the world reopened and were gaining momentum.

In China, though strict COVID measures were lifted in December 2022, normal economic activity only resumed in March 2023. Thus, the Group had less than two months of normal operation in the first half of the financial year. Nevertheless, the Group’s strong market presence and unique ‘Experience-Led, Digital-First’ strategies enabled it to quickly capitalise on the recovery.

Building on a gradual recovery after the market’s reopening, the Southeast Asia region continued to return to normalcy during the period under review. With increasing domestic demand and foreign investment, recovery is expected to continue amid the uncertainties.

In the Middle East, swift reopening and rapid diversification of economies under policies such as Saudi Vision 2030 strengthened the region’s recovery. With an increasing number of major events being hosted across the region – such as the 25th Arabian Gulf Cup in Iraq, FIFA World Cup in Qatar and the Noor Riyadh light and art festival – a positive spillover is expected to further boost local and regional economies alike. Excluding the significant non-recurring income generated from Expo Dubai and Oman museum mega-projects in the last financial period, performance in the region has satisfactorily met expectations.

Growth in the USA and Europe is expected to stall in 2023 due to tight policies to tame inflation and relieve financial stress. Despite the challenging situation, the Group’s digital and experiential marketing capabilities have enabled it to expand business opportunities. In both regions, the Group maintained its business performance at a satisfactory level.

Key to maintaining the Group’s growth and fostering business resilience is leveraging differentiated data and AI strategies and effective technologies to operationalise for value and intensify technological innovation. The Group is making good progress in its transition to a data-driven enterprise under its ‘Experience-Led, Digital-First’ model and ‘Content and Community’ strategy and aim to increase cost efficiency through enhanced operational processes.

Operations Review

Outlook

Despite the many factors which may hinder a strong economic recovery, the opening of global markets has reanimated the business environment. The Group’s well-founded resilience and continuous exploration of new technologies are critical assets as Pico works to stay ahead of market expectations. The Group’s strategic investments in Web 3.0, AI, metaverse, data and other technologies will continue to solidify its leading position in Total Brand Activation. Also, China’s policy of prioritising technological self-sufficiency and digitalisation to drive sustainable growth has led to the creation of new opportunities of considerable potential.

Additionally, as a facet of its consistent focus on expanding business coverage among tier-1 and -1.5 cities in China, the Group has established a strategic alliance with Hangzhou Expo Group to further explore opportunities in government projects, large-scale international competitions, cultural intellectual property and the venue management business.

Economic growth in China and the USA may remain under pressure due to geopolitical tensions, weakening global demand and tighter monetary and fiscal policies. Accordingly, the Group will manage its operations and growth strategies prudently, with a focus on quality clients and deeper collaboration with existing clientele for its digital and content services.

In the longer run, the Group’s progression as a data-driven enterprise and its continuously evolving business model constitute a unique strength for capturing more business and sustaining growth. For clients, the Group’s digital prowess will enable it to use new tools and applications to add depth and breadth to its service offerings to better meet clients’ needs today and in the future. For its internal operations, the Group will continue to focus on using data, AI and related technologies to increase its profit margin and operational efficiency.

Full announcement is available at: https://www.pico.com/en/investors?#company-announcement