6 Things to Know About NoonTalk, the Media Company Founded by Dasmond Koh, Looking to List on SGX
It’s not often when celebrities and the financial markets collide, but when they do, it invites more media attention than usual.
Consider The Honest Company founded by Jessica Alba in 2012 and listed on NASDAQ (NASDAQ: HNST) in 2021 after an IPO that raised $412.8 million.
On October 28, 2022, NoonTalk Media Limited (“NoonTalk”), a Singapore-based media company founded by Singaporean actor, TV host and radio DJ Dasmond Koh, released its preliminary offer document (over 300 pages) with the intention of listing the company on the Catalist board of the Singapore Stock Exchange (SGX). If you’d rather read the shorter summary, check out the featured product fact sheet.
Although the company is smaller than the usual SGX motherboard IPOs we see, we found this initial public offering intriguing as it gives us some insight into the Singapore media landscape. As a local Singapore company, NoonTalk would also face many typical challenges and potential expansion opportunities that other similar media companies would face.
Here are 6 things we discovered while going through their preliminary offer document and product highlights sheet.
NoonTalk’s #1 Business and Revenue Model
The revenue model is one of the first things potential investors should pay attention to before investing in a company. For NoonTalk, the company shared its goal to be Singapore’s leading media agency in creating quality entertainment content and inspiring a vibrant media landscape in Singapore, with a particular niche in Chinese-language media productions.
The company has two main business segments that generate revenue.
The first is his Management & Events arms. This segment includes services related to artist and talent management, venue and studio equipment management, project management (including live streaming services), and event conceptualization and management services (both in terms of in-person events and live-streamed events).
The second is his Production arms. This segment includes services related to multimedia creation and production, film and television production, and video production. Flagship projects she has curated include Chingay 2021 and 2022 and ChildAid 2021. She also produces movies, web series and TV series.
The company’s revenues for fiscal year 2022 are as such.
#2 Production revenue increased from FY2020 to FY2022
Production revenue has increased in recent years from $1.436 million in fiscal year 2020 to $2.593 million in fiscal year 2021 and $4.156 million in fiscal year 2022. This is mainly due to the possibility of securing projects such as Chingay 2021 ($1.4 million), additional revenue of $527,000 resulting from securing a larger scope of work for Chingay 2022 and additional revenue from drama and film productions.
#3 Management and event revenue fell in 2021, but rebounded in 2022
Unfortunately, revenue from its management and events business fell from $1.607 million in fiscal 2020 to $1.238 million in fiscal 2021. The company attributes the decline to lower demand for artists and the decline in the number of in-person events hosted by our customers due to tighter restrictions on events and public gatherings in Singapore due to the COVID-19 pandemic.
However, for fiscal 2022, the business segment saw a strong rebound, with revenue growing 78.9% to $2.215 million, which is higher than its pre-pandemic numbers. This is due to an increase in projects as restrictions on public events and gatherings in Singapore were gradually eased from the end of fiscal 2021 and throughout fiscal 2022.
#4 NoonTalk breaks even
When it comes to investing in companies, investors generally fall into two camps. These are investors who can turn to high-growth companies that are incurring losses but experiencing exponential growth in revenue and/or subscriber count. Some investors prefer to invest in companies that are already highly profitable.
NoonTalk doesn’t exactly fall into either camp.
For one thing, while growth looks decent over the past two years, it’s not a high-growth tech company with strong user traction. Rather, it is a B2B company that secures projects and delivers end-to-end value to its clients, including providing artists under its direction and producing shows for clients. As explained, the company is usually awarded contracts through competitive bidding for large-scale events and projects by clients such as People’s Association, National Arts Council, Marina Bay Sands and Changi Airport. Group.
The company is also aware that exceptional events such as an outbreak of contagious diseases such as COVID-19 can lead to a high number of event and project cancellations.
Currently, the company has an order book of $1,580,000.
On paper, the company is profitable. Profits for fiscal years 2020, 2021 and 2022 are S$73,979, S$189,244 and S$22,407.
However, excluding some one-time gains such as government grants, the company’s net profit would have been lower. According to the company, if this other income were excluded from the company’s income statement and other comprehensive income, it would have been loss-making during the current period. Net profit after tax for fiscal years 2020, 2021 and 2022 will decline from S$73,979, S$189,244 and S$22,407 to a (loss)/net profit after tax of (S$77,872), S$1,726 $ and (S$547,041).
It should be noted that the company appears to be able to maintain its cost of sales at a constant proportion of its revenue. This is at 65%, 64% and 72% for FY2020, FY2021 and FY2022 respectively.
#5 Artists Xu Bin and Kimberly Chia own shares in NoonTalk
It is always interesting to see who owns how many shares in a listed company. For NoonTalk, there is even more attention given that some of the major shareholders are well-known artists.
Artists Xu Bin and Kimberly Chia hold 2.22% and 1.11% of the company’s shares, respectively.
#6 NoonTalk’s strategic plans for the future
NoonTalk has highlighted some key strategic areas for growth. This includes expanding its regional footprint and pursuing regional collaborations to strengthen existing service offerings in the Asia-Pacific region, including Thailand and China. The company also hopes to expand its artist base regionally and represent regional artists in the Asia-Pacific region, such as the Greater China region.
With funds from the IPO, NoonTalk also hopes to drive long-term growth by pursuing strategic investments and acquisitions in production companies in the Southeast Asian region. This includes production and post-production companies that are involved in the film and television industries. NoonTalk also intends to diversify its operations by venturing into partnerships with companies in relevant industries such as MICE events, concert organizers to jointly organize concerts featuring Thai, Korean and Chinese artists.
Read also : 5 things to know about Emperador Inc (SGX: EMI), the largest brandy and spirits company in the Philippines
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