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Financial Highlights

• Revenue reached HK$2,291 million, an increase of 34% compared with the previous corresponding period, this result proves that Pico+ strategies have started to yield impressive results
• Profit attributable to owners of the Company increased by 3.4% to HK$128 million
• Profit attributable to owners of the Company excluding changes to the fair value of contingent consideration and amortisation of intangible assets relating to recent acquisitions would have been HK$143 million, an increase of 15.4%
• EBITDA was HK$204 million, an increase of 13.5%
• 85.6% of Revenue was from Exhibition and Event Marketing Services segment
• Recommended Interim Dividend of HK4.5 cents, Dividend payout ratio is 43.4%
• Basic earnings per share HK$10.38 cents

*excluding changes to the fair value of contingent consideration and amortisation of intangible assets relating to recent acquisitions, namely Not Ordinary Media, LLC (“NOM”) and Seed Communications LLC d/b/a Sub Rosa (“Sub Rosa”) 

(Hong Kong, 22 June 2018) Pico Far East Holdings Limited (“Pico”, “the Company” or “the Group”, HKEx: 752), a leading global Total Brand Activation company, today announced its 2018 interim results for the six months ended 30 April 2018 (“the period”).

The company is highly encouraged by the revenue growth achieved in the first six months of this financial year. During the period, Pico recorded a group revenue of HK$2,291 million (1H FY2017: HK$1,710 million), increased by 34% compared with the previous corresponding period. This result proves that the investments the company has made in Pico+ strategies have started to yield impressive results, in particular in the core Exhibition and Event Marketing Services segment.

Profit attributable to owners of the company increased by 3.4% or HK$4 million to HK$128 million (1H FY2017: HK$124 million), in which changes to the fair value of contingent consideration and amortisation of intangible assets relating to recent acquisitions, namely Not Ordinary Media, LLC (“NOM”) and Seed Communications LLC d/b/a Sub Rosa (“Sub Rosa”), were recognised. Profit attributable to the owners of the company excluding these items would have been HK$143 million, an increase of 15.4% or HK$19 million compared with the previous corresponding period.

Basic earnings per share is HK10.38 cents (1H FY2017: HK10.09 cents). The Board has recommended an interim dividend of HK4.5 cents per ordinary share (1H FY2017: HK4.5 cents).

Business Review

Prospect

The second half of this financial year is off to an encouraging start, with the Group successfully winning several major multi-year contracts. The Group’s successful provision of venue overlay services for the Sochi 2014 Winter Olympics created opportunities for the Group to provide total brand activation services for several corporate sponsors at the 2018 FIFA World Cup, which is being held in Russia in June and July.

Despite the uncertainty created by the on-going trade dispute between the US and its main trading partners, China and Europe, we are confident that the encouraging results of the first half of this financial year are expected to improve further, as we anticipate more shows and events in the exhibition industry in the second half of this financial year.

Pico’s new investment, NOM, will continue to engage in media planning, procurement and optimisation in social video for clients based in the US. NOM is making good progress, having acquired a number of reputable clients since the acquisition.

Looking ahead, the Group will continue to ramp up its investment strategy via potential acquisitions. At the same time, as the Group continues to provide deeper Pico+ solutions for a growing number of leading brands, the Group is confident that this new business stream will continue to expand and create tangible values for clients, the Group and shareholders.

About Pico Far East Holdings Limited

Pico is a global leader in Total Brand Activation. We specialise in engaging people, creating experiences and activating brands. Innovative, insightful and inspired, Pico brings brands to life and creates experiences through Total Brand Activation – from strategy to execution. Leveraging a track record in experience design that spans half a century, Pico creates immersive audience engagements which harness the power of technology, content and our many production services – delivering extraordinary experiences to millions of people around the world.

The Pico Group has been named Asia Pacific’s Best Event Agency at the 2018 CEI Readers’ Choice Awards. The Pico Group won the Silver award in the B2B Agency category and Bronze in the Event Agency category at Marketing Magazine’s Agency of the Year Awards 2017 in Hong Kong. The Group was the Best Marketing Website winner at WebAward 2017, organised by the US-based Web Marketing Association. In North America, the Pico Group has been listed as one of Special Events magazine’s 50 Top Event Companies since 2012.

Pico Far East Holdings Limited has been listed on the Hong Kong Stock Exchange since 1992 (HKEx Stock Code: 752). Our associate company, Pico (Thailand) Public Company Limited was also listed on Thailand’s MAI in 2004 (Stock Code: PICO).

Please visit www.pico.com for more information.