DRT boosts earnings for One Great Studio

 


 

One Great Studio Company Limited for the first quarter of 2025 saw  topline revenue soften due to shifts in the SEO market. However other business lines showed  growth.

One Great Studio is  a marketing agency which successfully raised $338.63m in their Initial Public Offering (IPO) on the Jamaica Stock Exchange’s Junior Market in August 2023.

In February 2025, the company  announced the strategic acquisition of the business of DRT Communications, a public relations and media intelligence firm, for a total consideration of J$115 million, which included a J$35 million performance-based earnout over three years.

 DRT is a media monitoring, communications and public relations business based in Kingston Jamaica. They offer strategic marketing management.

Management noted for Q1 2025  non-SEO revenue surpassed SEO revenue for the first time, marking a  shift and expansion in  revenue model and the strategic focus on building a “House of Agency Brands”.

Management stated, “Our acquisition of DRT Communications is already delivering value and expanding our services and new client relationships.”

Q1 2025 Income Statement shows a 16 per cent year-over-year (YOY) dip in revenue to J$76 million, driven by lower SEO performance.

Management said, “The Net Loss of J$13 million and Operating Profit margin of -11.2 per cent were due to strategic investments in team growth, shared services infrastructure and acquisition integration.

“Still, with a debt-to-equity ratio of 2.55 per cent, the company remains well-capitalised and financially resilient.”

The company reported total assets of J$708 million, up from J$667 million at the end of Q1 2025. Total Equity decreased by J$7 million, or 1 per cent, while total liabilities increased by J$47 million due to the earn-out portion booked for the purchase of DRT and prepaid income received from clients.

 Cash resources (cash and short-term investments) totaled J$172 million. The reduction in cash and short-term investment is primarily attributable to the acquisition of DRT Communications Ltd.

 The company’s balance sheet currently shows only J$15 million in debt, reduced from J$23 million for the same period year-on-year.

 

 

Management concluded, “We have taken deliberate steps to build out capacity, improve operating structure, and position the Group for the next phase of sustainable growth. During the quarter, we5 focused on strengthening operational infrastructure through team expansion and the continued development of our internal shared services infrastructure, originally initiated in 2024.”

Caribbean Money Daily

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