2018.01.24
Pico Far East Holdings Limited Announces 2017 Annual Results

Fiscal 2017 Highlights

  1. Total revenue declined slightly by 4% to HK$3,979 million
  2. Profit for the year attributable to owners of the Company decreased slightly by 6.4% to HK$281.4 million
  3. Full year dividend HK 18.5 cents representing Payout Ratio of 80.7%
  4. Operating margin was 8.9%
  5. Basic earnings per share HK22.92 cents

 

Financial Summary

For the 12 months ended 31 October (HK$'000)

2017

2016

Change

Revenue

3,978,751

4,142,724

-4.0%

Gross profit

1,245,023

1,248,143

-0.2%

Gross profit margin (%)

31.3%

30.1%

+1.2ppts

Operating margin (%)

8.9%

9.0%

-0.1ppt

Profit attributable to Owners of the Company

281,439

300,501

-6.3%

Net profit margin (%)

7.1%

7.3%

-0.2ppt

Basic earnings per share

HK22.92 cents

HK24.57 cents

-6.7%

Final dividend per share (recommended)

HK9.0 cents

HK7.5 cents

+20%

Special dividend per share (recommended)

HK5.0 cents

HK5.0 cents

-

Full year dividend

HK18.5 cents

HK17.0 cents

+8.8%

 

(Hong Kong, 24 January 2018) Pico Far East Holdings Limited (“Pico”, “the Company” or “the Group”, HKEx: 752), a leading global Total Brand Activation company, today announced its 2017 annual results for the 12 months ended 31 October 2017 (“the year”).

Profit for the year attributable to owners of the Company decreased by 6.4% to HK$281.4 million (2016: HK$300.5 million). Operating margin was 8.9% (2016: 9.0%), and earnings before interest, tax, depreciation and amortisation (EBITDA) was HK$417.7 million (2016: HK$431.5 million).

Total revenue in Hong Kong dollar terms declined by about 4.0% to HK$3,979 million (2016: HK$4,143 million) mainly due to the completion of two non-recurring mega projects in 2015, Singapore 50th anniversary events (SG50) and ITMA (International Textile Machinery Association) trade show in Milan, that was captured in 2016 but not this year, and the substantial completion of the Shanghai Disneyland in 2016. On the whole, the results we achieved this year were commendable even without the contribution from these non-recurring mega projects.

The Directors now recommend the payment of a final dividend of HK9.0 cents and a special dividend of HK5.0 cents (2016: a final dividend of HK7.5 cents and a special dividend of HK5.0 cents) per ordinary share. Together with the interim dividend of HK4.5 cents (2016: HK4.5 cents) per ordinary share, total dividend for the year amounts to HK18.5 cents (2016: HK17.0 cents) per ordinary share, which represents 80.7% of this year’s basic earnings per share of HK22.92 cents (2016: HK24.57 cents).

 

Business Review

Revenue by segment

For the 12 months ended 31 October

2017

2016

Change in Revenue

HK$’ Million

% to Group’s Revenue

HK$’ Million

% to Group’s Revenue

Exhibition and Event Marketing Services

3,189

80.1%

3,001

72.4%

+6.3%

Visual Branding Experiences

348

8.8%

343

8.3%

+1.5%

Museum, Themed Environment, Interior & Retail

296

7.5%

593

14.3%

-50.1%

Conference and Show Management

145

3.6%

206

5.0%

-29.6%

 

Revenue by region For the 12 months ended 31 October
2017 2016
HK$’ Million % to Group’s Revenue HK$’ Million % to Group’s Revenue

Greater China

(The PRC, Hong Kong, Macau and Taiwan)
2,481 62.4% 2,610 63.0%

South and Southeast Asia

(India, Malaysia, the Philippines, Singapore and Vietnam)

964 24.2% 982 23.7%

Middle East

(Bahrain, Qatar, and United Arab Emirates)

230 5.8% 204 4.9%
Italy, UK and US 57 1.4% 172 4.2%
Others 247 6.2% 175 4.2%
TOTAL 3,979 100% 4,143 100%

 

The Total Brand Activation (TBA) services strategy, which we launched more than five years ago, has lifted the Group to a vantage point to capture the growing demand for such services by more and more companies in Asia. These companies continually seek more precise and targeted marketing solutions through online and offline media to reach their consumers, which we can offer seamlessly through our specialised agencies distinguished under a Pico+ brand.

Looking immediately ahead, the Group should continue to do robust business this year through all its major business segments as seen in the good business momentum we have experienced since the beginning of the new financial year.

 

Full announcement is available at: https://www.pico.com/en/investor/company-announcement


ACTIVATE YOUR BRAND NOW