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Financial Highlights

• Revenue increased by 8% to HK$2,474 million
• Profit from core operations increased by 5.5% to HK$192 million
• EBITDA remained stable at HK$219 million
• Recommended interim dividend of HK4.5 cents; Dividend payout ratio is 45.2%
• Basic earnings per share HK9.95 cents

*Before a change in remeasurement of contingent consideration

(Hong Kong, 19 June 2019) Pico Far East Holdings Limited (“Pico”, “the Company” or “the Group”, HKEx: 752), a leading global Total Brand Activation company, today announced its 2019 interim results for the six months ended 30 April 2019 (“the period”).

The Group sustained the growth momentum in all business segments in the first half of this financial year. Revenue for the period was HK$2,474 million, an increase of 8% compared with the previous corresponding period of HK$2,291 million. This growth is a testimony to the effectiveness of the Group’s strategies, which have successfully mitigated certain knock-on effects created by unfavourable exchange rates between the US dollar and the RMB, rising global trade tensions, and tightening financial conditions worldwide.

The profit from core operations was HK$192 million (2018: HK$182 million), an increase of 5.5% compared with the previous corresponding period. Profit attributable to owners of the Company decreased by 3.9% to HK$123 million (2018: HK$128 million), in which a change in remeasurement of contingent consideration and amortisation of other intangible assets arising from business combinations totalling HK$38 million (2018: HK$23 million) were recognised.

Basic earnings per share is HK9.95 cents, as compared to HK10.38 cents in the previous corresponding period. The Board has recommended an interim dividend of HK4.5 cents per ordinary share, compared with HK4.5 cents in the previous corresponding period.

Business Review

Outlook

Despite the numerous challenges to the Group that the intensifying US-China trade dispute presents, the second half of this financial year began with the successful delivery of several major contracts.

The Exhibition and Event Marketing Services business segment will continue to account for the majority of the Group’s business activities in the near term. At the same time, the on-going success of Pico+ strategies is allowing the Group to capture total brand activation contracts with long-standing clients and further expand client base into new areas.

2020 will be a year of spectacle and mega-events for the Group, with the Olympics, World Expo and various new and upgraded themed attractions augmented by a host of large-scale infrastructure and tourism projects. Many of these projects are well underway, creating immense opportunities for the Group.

The Group is confident that by next year, barring any unexpected events, the positive revenue growth in recent acquisitions will begin making positive contributions to the growth of the Group.

The Group will continue the investment strategy in the UK and the US via potential acquisitions.

According to the World Bank’s Global Economic Prospects report, released in early June, the global economy faces some uncertainty ahead, with more fragile growth momentum and more substantial risks cited as reasons for a reduced global growth forecast.

While being cautious in the face of these risks, Pico remains confident that by focusing on the growth strategies, the Group will continue to see positive results. As always, Pico is being prudent with its investment to ensure that potential risks are managed. Unforeseen circumstances aside, the Group anticipates that the second half of this year will see continued solid performance.