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Financial Highlights 

• Revenue increased by 12.1% to HK$4,541 million
• Gross profit increased by 15.1% to HK$1,359.1 million
• Profit attributable to owners of the Company increased by 18.8% to HK$162.6 million
• Full year dividend of HK6.0 cents; Dividend payout ratio is 45.7%
• Basic earnings per share of HK13.13 cents
  
  

*Before a change in remeasurement of contingent consideration

(Hong Kong, 30 January 2023) Pico Far East Holdings Limited (‘Pico’ or ‘the Group’, Stock code: 752.HK), a leading global total brand activation company, today announced its 2022 annual results for the 12 months ended 31 October 2022.

Despite the widespread hardships of the 2022 financial year, the Group’s pre-emptive transformation and planning enabled it to capture growth opportunities, with revenue and profit markedly increased over the previous year.

During the financial year under review, the Group reported total revenue of HK$4,541 million (2021: HK$4,052 million), representing a 12.1% increase compared to the same period of the previous year. Notably, the Group’s total revenue progressively increased by 32.1% during the period between the depths of the pandemic in 2020 and this financial year.

Earnings before interest, taxes, depreciation, amortisation and a change in remeasurement of contingent consideration (EBITDA) increased by 14.5% to HK$298.6 million (2021: HK$260.8 million).

Profit from core operations was HK$208.9 million (2021: HK$165.7 million), a 26.1% increase compared to the same period last year.

Profit for the year attributable to owners of the Company increased by 18.8% to HK$162.6 million (2021: HK$136.9 million).

The Directors recommend payment of a final dividend of HK6.0 cents (2021: HK5.0 cents) per ordinary share. The total dividend for the year of HK6.0 cents (2021: HK5.0 cents) per ordinary share represents 45.7% of the year’s basic earnings per share of HK13.13 cents (2021: HK11.06 cents).

The meetings, incentives, conventions and exhibitions (MICE) industry continues to struggle against pandemic-related disruptions, with the global economy now confronted with the prospect of recession and lasting stagflation. Despite this challenging environment, the Group’s business has remained profitable, responding flexibly to change and moving quickly to find opportunity in reopened markets.

Markets which have been gradually rebounding to normal, such as Southeast Asia and the USA, helped the Group to counter some of the negative impact from weaker markets, especially China.

Even in reopened markets where in-person activations have begun to return, demand for events with digital or integrated elements has continued. With experience and expertise derived from its digital transformation, the Group is ideally placed to meet this demand. Its ability to flexibly deliver effective online, offline and integrated activations has crucially enabled the Group to seize opportunities for new growth emerging from the recovery amid uncertain economic conditions.

Operations Review

 

Outlook
Overall, with major markets such as Southeast Asia, the Middle East and USA already reopened or with reopening well underway, the Group expects their economic recovery to continue with few exceptions, though at a varying pace. MICE sector activity in these economies should commensurately rise.

Starting in December 2022, several pandemic control measures in China were relaxed or discontinued; and in January 2023, quarantine requirements for inbound travellers were removed. The Group is ready to capture opportunities that may accordingly emerge.

The Group believes the key to maintaining its growth momentum lies with forward looking strategies to build resilience. It is confident that the greater resilience and flexibility gained through its ‘Reimagine, Reinvigorate and Reinvent’ vision will enable the Group to continue its success in catering to new market demands such as metaverse and gamification.

Though the outlook is tempered by uncertainty, the Group’s cautious adaptive measures and robust digital offerings have placed it in an excellent position to identify new revenue streams in prospective sectors amid a challenging environment. The Group’s Experience-Led, Digital-First and Content Creation and Community-Building strategies have endowed it with the ability to consistently meet or exceed client and market demand, further solidifying its audience engagement and experience leadership.