Revenues jumped 38.2% to $63.8m for 2020

Digital and creative institute iCreate is now reaping the benefits of its diversification into production, which saw it reintroducing Reggae Sunsplash to the local entertainment calendar, but in a virtual format.

The very popular Reggae Sunsplash, which is a reggae music festival first staged in 1978 in Jamaica has been on and off the entertainment calendar since then, but was revived last November by iCreate after being absent for a number of years.

The two-day event held from November 27-28, 2020, pivoted to a virtual festival due to the COVID-19 pandemic.

iCreate, which is aimed at filling the gap in skills training and development of creatives in Jamaica and the wider Caribbean, reported that its staging of Jamaica’s once biggest reggae festival has paid off.

The directors stated that Reggae Sunsplash “contributed significantly to the revenues made and break-even from a profit and loss perspective.

“The festival was extremely successful, bringing in viewership from over 20 countries with over 300,000 viewers. We are thankful for sponsors such as Visa and Jamaica Tourist Board who ensured the success of the festival.”

Gross profit of $43.9 million recorded for 2020

For the 12-month period ended December 2020, gross profit increased from $22 million to $43.9 million, representing a 99.5 per cent increase over the previous year. Operating profit for 2020 was $2.6 million, reversing the loss of $32.47 million for the same period in 2019.

During the year, the company sought to reduce operating costs by continuing its cost reduction exercise to match the realities of the Covid-19 pandemic.  For the December quarter, iCreate recorded a total comprehensive loss of $6.5 million.

However, this is a vast improvement over the $21.5 million of losses recorded for the same quarter in 2019.

The directors advised shareholders that, “during a pandemic year, we were able to stabilise the company with a combination of diversification of revenues, introduction of new digital marketing courses, securing new partnerships and a company-wide reduction of losses. We have moved from losses of $45.9 million to a loss of $2.5 million for the year ending December 31, 2020”.

They expressed pleasure with the 2020 financial results, looking forward to further implementation of the strategies going into 2021.

Year-to-date revenue increase of 38.2%

For 2020 revenues jumped to $63.8 million, a 38.2 per cent increase when compared to the $46.2 million recorded for the same period the previous year.

The directors noted that, “while there seems to be no ending in sight as it relates to the current pandemic, iCreate continues to push its virtual classes and maintain social distancing protocols for physical classes. We continue to build out our corporate partnerships with companies such as Heart Trust/NTA”.