Taipei, 13 November 2017
Taipei, 13 November 2017
VHQ Media Holdings Ltd today announced financial result for year-to-date ended September 30, 2017 and revenue for October 2017.
The company reported earnings for year-to-date ended September 30, 2017 with revenue of NTD962.117 million with net income attributable to VHQ at NTD268.626 Million. Earnings per share is 8.32. On YOY basis, revenue was up 21.95%, net income was up 65.35% and earnings per share was up 65.41%. Total net income for 3rd Quarter 2017 was augmented by NTD56 Million for the quarter as a result of gains from the partial divestment of the film adaptation rights for “Foreign Land”.
“YTD up to September 2017, our film revenue contributed 67.95% of total revenue, up by 41.89% YOY. The growth was driven by an increase in the average revenue per project across the board. This average increased by 20% on a YOY basis”, said Low Kok Wah, VHQ’s CEO. Budgets for better China-made movies have increased in general due to 3 main factors – costs of casts (actors), longer production timelines and costs of post-production, including CGI and Visual Effects. VHQ is witnessing a trend of increasing budget allocations for post-production and visual effects in movies. The Company is very bullish on sustained growth prospects of its post-production and special effects business.
VHQ has put in place a team to capture more business in the internet content space. It’s 3rd Quarter revenue included an internet drama project and it expects to work on more internet dramas, directly benefiting from the explosive growth in China’s online content industry. The annual compounded growth of the online TV drama market for the past three years has been as high as 60%. With the exponential growth in paid subscription for internet content consumption, platform owners have substantially increased the production budget for online television dramas. VHQ is very well positioned to take on more business in higher-end internet dramas and movies.
VHQ Media Holdings Ltd reported revenue of NTD100.917 million for October 2017, up 19.63% YOY; total revenue from January to October 2017 is NTD1,061.028 million, up 22.727 YOY.
VHQ has good reasons to remain optimistic about its business for 4Q of 2017. The China market continues to see an increase in locally produced movies. VHQ’s order book is filling up from now until end of 2018. In addition, the company will increase its revenue from projects in the internet drama and movie space. The movie “Mai Bing Bing”, a family comedy which VHQ has invested and worked on the post-production will soon be released in end of January 2018 in China. Box office revenues from this movie is expected to contribute to the Company’s top and bottom lines.
VHQ was established in Singapore in 1987 as a post-production studio. In 2001, its then Managing Director lead an MBO exercise and recapitalised the company operates a network covering Asean. In 2013, VHQ China was launched to service the ever increasing volume of work, mainly feature films, which originated from China. In 2014, VHQ Media Holdings Ltd was incorporated and was listed in December 2015 on the Taipei Exchange (Ticker – VHQ-KY 4803). VHQ’s core business is in the production of visual effects, animation, motion graphics and post production services for commercials & feature films.
VHQ celebrates its 30th anniversary in 2017 with thriving facilities in Singapore, Malaysia, Indonesia, Taiwan and China.
For general enquiries, please contact:
Low Kok Wah
Tel: +886 2 2657 7886
For media enquiries, please contact:
Sarah Liu, Time Investor Relations
Tel: +886 932 949928