KUALA LUMPUR: Malaysian social commerce platform provider Netccentric Ltd (Netccentric) reported a strong set of results for the first half (1H) ended 30 June 2021 (FY21) today.
Netccentric posted revenue of S$5.23 million (RM16.25 million) for the period, up 60 per cent over the previous corresponding period, attributed to strong growth across the various business units.
Gross profit climbed 34 per cent year-on-year (YoY) to S$2.23 million (RM6.93 million).
This strong performance resulted in Netccentric having a net cash position of S$5.43 million (RM16.87 million) and no debt, providing further strength and flexibility to further the company's growth objectives.
Executive chairman and major shareholder Ganesh Kumar Bangah said the rapid growth in revenue and deal pipeline indicates the strength of Netccentric's diversified model and strategic initiatives.
"We are pleased to have delivered rapid growth in revenue and underlying earnings, particularly in our core influencer and content marketing business through the most recent quarter and half year.
"We have set ambitious objectives to expand in this high-growth market, and we believe our execution of the company's strategy has allowed us to deliver on our promises with scale benefits beginning to show in our bottom line," said Ganesh in a statement today.
"We look forward to the continued enhancement of our platform's functionalities to promote growth in engagement, total transaction value and revenue," he said.
Last year, The New Straits Times had reported that the former National Tech Association of Malaysia (PIKOM) chairman was said to be embarking on transforming the Netccentric services-based business model to a platform-centric one for recurring income and greater profitability.
For H1 FY21, Australian Securities Exchange-listed Netccentric reinforced its status as a pioneering and established social media influencer marketing solutions provider.
The company expects to gain traction with its innovative social commerce platform, Nuffnang Live Commerce, in the second half (2H) of FY21.
As this traction builds, the company's growth in 1H FY21 continued to be substantially driven by its core social influencer and content marketing platform, Nuffnang Sdn Bhd (Nuffnang).
Through Nuffnang, Netccentric provides engagement and ambassadorship opportunities to global brands through its pool of 15,000 influencers, key opinion leaders, celebrities and content creators who offer a collective reach to more than 20 million engaged social media followers throughout Southeast Asia.
Revenue growth was boosted by significantly increased expenditure from anchor clients, including KFC, Unilever and Dutch Lady Milk Industries.