[ By Small Caps ]
Social commerce technology developer Netccentric (ASX: NCL) has surged closer to profitability after posting double-digit revenue growth for the half year ended June (H1 FY2022).
The company’s revenue for H1 FY2022 reached S$5.79 million (A$6.02 million), which was an 11% year-on-year increase on H1 FY2021 levels.
Revenue growth was achieved across all Netccentric’s business units.
With the mounting revenue Netccentric’s path to profitability is getting closer, with a before tax loss of $170,000 for the period. The figure was a large improvement on the $1.4 million loss in H1 FY2021.
“We are pleased to have delivered double-digit growth in revenue and made solid progress towards profitability in the face of volatile H1 FY2022 market conditions,” Netccentric executive chairman Ganesh Kumar Bangah said.
Nuffnang outpaces industry
Netccentric’s wholly-owned social influencer and marketing platform Nuffnang contributed almost 60% to the group revenue for H1 FY2022.
Underpinning this, was the Nuffnang Malaysia platform, which saw its 10 largest clients boosting their total advertising spend.
These clients included Unilever, Dutch Lady and Mamee.
Netccentric has also developed seamless end-to-end livestream shopping experience for its Nuffnang live commerce (NLC) platform.
The technology navigates viewers from awareness to the purchase stage “instantaneously” – enabling viewers to use their devices to immediately purchase promoted products.
During H1 FY2022, the NLC platform activity levels “grew strongly” with new and existing clients continuing to adopt the technology.
NLC posted a 394% increase in gross merchandise volumes $4.18 million compared to $850,000 in H1 FY2021.
Additionally, total transacted orders were 177% higher in H1 FY2022.
NLC’s investee company eShoplive improved conversion rates through platform enhancements. NLC has also supported eShoplive in launching its new Malay-language live channel – ePheelive.
Netccentric’s social media agency Sashimi continued its expansion in H1 FY2022. It delivered year-on-year revenue growth of 16% to $1.45 million for the period.
Meanwhile, the performance marketing agency business Plata & Plunta also boosted revenue. For H1 FY2022, the agency’s revenue was up 10% to $980,000.
Netccentric has transitioned into H2 FY2022 with $5.06 million in the bank to fund its ongoing growth initiatives.
“We have set ambitious objectives to expand in our chosen markets, which show great potential for long-term growth, particularly for our core influencer and content marketing business.”
Mr Kumar Bangah noted the company’s diversified business model had underpinned its “consistent growth”, with more initiatives implemented to continue this trend.
“Foremost, among these initiatives is NFT Tech – our recently announced Web 3.0 creator platform.”
“Through this platform, we are building the infrastructure for digital content ownership on the internet, along with apps that make it easy for the consumer to get involved.”
“Over the long term, Netccentric’s aspiration in this field is to become indispensable to digital creators.”.
Mr Kumar Bangah added he expected the consistent growth across all divisions is expected to continue.