iCreate posts turnaround in 1Q, first quarterly profit since listing
An iCreate promotional photo.
Digital training institute iCreate Limited has reported a net profit of $1.25 million for the first quarter ending March 31, 2020, its first profitable three-month period since listing on the Junior Market of the Jamaica Stock Exchange more than a year ago.
The result represents a 184 per cent turnaround when compared to the net loss of $1.48 million posted by the company over the comparable period in 2019.
"This was attributable to the number of strategic initiatives that were set in motion after being listed in 2019," stated the company report accompanying the financials.
"Some of these strategic initiatives included the raising of the bond issue which was closed in February 2020 and the completion of the expansion and construction of iCreate’s training and operational infrastructures which was completed in 2019."
iCreate's revenues more than doubled over the period to $24.5 million, which is more than half of the total revenue recorded for the 2019 financial year. It attributed the revenue growth to a number of initiatives, including:
- Diversification of customer segments to now include Business-to-Consumer (B2C) Training; Business-to-Business (B2B) Training and Business-to-Business (B2B) Training Content Design and Production;
- Revenue growth in the B2C Training customer segment, as a result of the addition of two new courses at its Kingston location - Event & Entertainment Production and Interior Design;
- Revenue growth in the B2C Training customer segment, as a result of growth in its student population, with revenue from Creative Courses increasing by 166 per cent and revenue from digital courses increasing by 21 per cent;
- Revenue growth in the B2B Training customer segment, as a result of earnings from its partnership with HEART towards the training of individuals from the institution in the areas of digital photography and digital video production, in both Kingston and Montego Bay;
- Revenue growth through the addition of a new customer segment: B2B Training Content Design and Production, aimed at tapping into what the company said was the growing demand of e-learning content design and production.
The company noted that, in 2019, it invested heavily in facilities and equipment which now allows it to partner with various educational institutions to provide training content to support e-learning initiatives.
"E-Learning represents the future of education for schools, colleges, universities and corporate training departments which are all embracing the role of digital training delivery platforms," the company said.
Meanwhile, in an effort to preserve profits amid the coronavirus pandemic, the company said it we will be delivering the majority of its courses using a hybrid of online and face-to-face delivery mechanisms.
"This change to a more blended strategy will allow us to expand our offerings to a wider audience than was previously achievable with a face-to-face only training delivery strategy," iCreate said.
"As we review all of our operations and marketing strategies, in response to the COVID-19 crisis, we recognise that several other opportunities will arise. The opportunities will make pivots to our business model, training delivery strategies and revenue streams; each of which will provide both short-term and long-term benefits to the bottom line," the company added.