Business
JM | Dec 10, 2020

iCreate revenues slightly up but reports nine months net loss of $2.26 million

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Major partnerships delay credited to less than impressive revenue out-turn

Tyron Wilson, Founder, President & CEO of iCreate Limited. (Photo: Contributed)

Educational institution iCreate Limited has managed to grow its revenues for the nine months ended September 30, 2020, but still recorded a loss for the period.

The Tyrone Wilson-led iCreate, which is a creative institute developed with the aim of filling the gap in skills training and development of creatives in Jamaica and the wider Caribbean, reported revenues for the period of $47.12 million, up from $41.40 million reported a year ago. It’s the only educational institution listed and traded on the Jamaica Stock Exchange.

For the third quarter, iCreate posted revenues of $7.86 million, down from the $16.38 million recorded for the same period in 2019. In explaining the reason for the less than impressive revenue out-turn, the institute’s management reports that “the start of one of our major partnerships was delayed and we had to depend on our business-to-consumer market to record revenue during this period”.

During this period, iCreate was able to restart classes while adhering to social distancing protocols, in addition to expanding its virtual classes. The management reports that the institute continues to build out its corporate partnerships with companies such as Heart Trust/NTA.

GROSS PROFITS UP

Total direct costs amounted to $7.97 million for the nine-month period compared to $10.94 million for the nine months of 2019. This resulted in gross profit of $39.16 million relative to $30.47 million booked last year.

Wilson addressing a group at iCreate. (Photo: Facebook @iCreateEDU)

Gross profit for the quarter amounted to $6.66 million versus $12.18 million booked for the third quarter of 2019. Other income for the nine months amounted to $68,256 relative to $554,759 for 2019, while the other income for the quarter totalled $34,106 compared to the $261,854 recorded in 2019.

Total operating expenses for the period closed at $38.86 million in contrast to $42.45 million for the corresponding period of 2019. Operating expenses for the third quarter totalled $11.29 million compared with $15.33 million recorded for 2019.

Administrative expense decreased by 11 per cent to $35.94 million (2019: $40.29 million) for the nine months. Depreciation and amortization expense increased year over year to close at $2.93 million versus $2.16 million recorded for the corresponding period in 2019.

OPERATING PROFIT

As such, operating profit for the period closed at $361,204 in contrast to a loss of $11.43 million for the corresponding period of 2019. Operating loss for the third quarter closed at $4.60 million compared with the $2.88 million recorded for 2019.

Finance cost for the nine months amounted to $2.62 million relative to $1.08 million a year ago.

For the nine months, iCreate reported comprehensive income of $4.81 million, relative to a comprehensive loss of $12.51 million booked in 2019…

Consequently, net loss for the nine-month period amounted to $2.26 million versus a loss of $12.51 million in 2019. For the third quarter, net loss totalled $5.35 million compared to $3.17 million booked in the corresponding quarter last year.

For the nine months, iCreate reported comprehensive income of $4.81 million, relative to a comprehensive loss of $12.51 million booked in 2019, while, for the quarter, total comprehensive income amounted to $1.72 million versus a loss of $3.17 million booked for the corresponding period.

LOSS PER SHARE

Loss per share (LPS), for the nine months ended September 30, 2020, amounted to $0.01 compared to a LPS of $0.06 for the same period of 2019. The LPS share for the quarter amounted to $0.03 relative to $0.02 reported in 2019.

iCreate benefited from a revaluation surplus of $7.1 million from its licence agreement with Code Fellows to acquire the licence to deliver coding and data security courses in Jamaica.

As at September 30, 2020, total assets increased to close at $56.30 million (2019: $47.50 million). The increase was largely due to a $10.70 million growth in ‘Investment or other non-current assets’ which closed at $11.97 million (2019: $1.27 million).

Shareholder’s deficit totalled $792,411 compared to a shareholders’ equity of $26.71 million quoted as at September 30, 2019. This resulted in a shareholders’ deficit value of $0.004 (2019: book value $0.135).

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