Digital marketing agency One Great Studio (1GS) has released its year-end audited financial statements for the period ended December 31, 2023.

The results, released on Thursday, February 29, show improvement in the company’s year-over-year financial performance, with extraordinary growth across key financial metrics. Revenues surged by an impressive 93 per cent, moving from J$238 million in 2022 to J$461 million for the current period, while net profit reflected an increase of 183 per cent year over year, booking J$79 million for the period, compared to J$27 million for the prior year.

Consequently, earnings per share (EPS) grew from J$0.02 in 2022 to J$0.06 for the current period. This achievement in growth underscores the company’s business model and effective management and execution strategies.

This significant improvement in the company’s overall financial performance is driven largely by some standout accomplishments throughout the year, particularly the successful completion of the company’s IPO and subsequent listing on the junior market of the Jamaica Stock Exchange (JSE). This resulted in a capital injection of over J$338 million, some of which was allocated to reducing debt and improving the company’s operating cashflows.

Furthermore, to diversify its revenue streams, 1GS completed the acquisition of the assets and operations of HVSEO (SEO Agency) in September 2022, a move that led to the introduction of additional revenues and profits directly attributable to the company and its shareholders. The successful integration of this acquisition in 2023 has helped stakeholders realise GREAT value.

Addressing this showing, CEO of 1GS Djuvane Browne said: “We are excited to share our year-end financial results with our stakeholders, which demonstrate our dedication to delivering value to our shareholders. Coming out of the IPO, our goal was to execute some key strategic objectives and to deliver on the commitments outlined in our Prospectus. Our entire team deserves credit for the significant role they played in what we’ve been able to achieve for the year.”

Even though operating expenses for the year was recorded at $57.4 million, showing an increase of 87.2 per cent over that of 2022, operating profit also increased to $136.2 million, representing a 119.4 per cent increase compared to that of the prior year. This translated into a higher operating profit margin of 30 per cent, resulting from prudent cost management and operational synergies from integrating the SEO business line.

Total Equity for the year showed a sharp increase of 271.3 per cent, primarily due to the over J$338 million received from new shareholders in the IPO, as well as a J$71.7 million increase in the accumulated surplus. The company’s balance sheet continues to show best-in-class resilience, with very little debt, significant levels of liquidity, and an increasingly diverse geographic revenue generation base. Given this position, the company is perfectly situated to take advantage of any strategic opportunities as they are presented.

For the period, total assets grew by J$171.3 million, representing a 35.8 per cent increase over that of 2022, fuelled primarily by higher bank and investment balances, while total equity grew by 271.4 per cent to $432.6 million. Total liabilities fell by $261.3 million or 82 per cent.

Net operating cash flow experienced a remarkable increase of 208 per cent, underscoring the company’s financial strength and liquidity. Higher operating cashflows resulted in higher bank and investment balances.

Looking Ahead

For the current financial year, 1GS is poised to capitalise on its strong momentum and drive further growth through specific strategic initiatives that will continue to drive sustainable growth and create long-term value for its stakeholders.

The company will look to launch new quick-start products to assist with a more efficient client onboarding process and to maximize the output of our resources, resulting in reduced costs. Additionally, the 1GS Team will explore other areas for efficiency, particularly service delivery innovation using artificial intelligence (AI) and other leading-edge technology to significantly reduce the timelines for delivering select services.

With the acquisition of HVSEO and the development of a new SEO product designed for businesses operating in smaller markets like the Caribbean, 1GS will capitalise on the opportunity to become a leading SEO player in the region. This strategy will present a new area of expansion, given that the region is a largely untapped source of revenue for this business line.

A keen focus on business development will see the 1GS Team executing an Agency Partnership Program (APP), designed to expand the service offerings to its clients, while, similarly helping traditional or niche agencies to serve their clients better by co-delivering services with 1GS. This programme can potentially increase revenues from the built-in customer base of each agency partner.

Furthermore, the company will continue to explore multiple inorganic growth opportunities, which often take time to identify, explore, and develop. The 1GS team has a track record showing that it can execute an accretive inorganic growth strategy that is transformative for the business.

“As we look ahead, we are excited about the opportunities we have in our line of sight. We are confident that just as this company has been transformed over the last 18 months, we have the right strategy in place to continue producing excellent results, and to press towards GREAT things at 1GS,” said Browne.