Homeboyz Entertainment has reported improved performance in its second release of financial statements since listing on the Nairobi Securities Exchange (NSE) in December 2020. The company’s half-year net profit for the period ending on 30th June 2021 increased to KSh2.3 million from a net loss of KSh3.8 million in the same period in 2020.
Homeboyz posted an increase in net profit despite its revenue declining in the six-month period. Its revenues fell by 4% to KSh63.3 million from KSh66.2 million in June 2020.
The entertainment firm managed to lower its direct costs to KSh26.8 million in the first half of this year, from KSh29.6 million in the first half of 2020, equivalent to a 10% drop. Administrative costs also decreased to KSh12.8 million from KSh25.5 million in the period under review.
Homeboyz said that its financial performance in the first six months of this year was adversely affected by the covid19 containment measures introduced earlier in the year. Nonetheless, the entertainment company received a revenue boost from its contracts with the Football Kenya Federation (FKF), Kenya Open golf tournament, and the World Rally Championship held in Kenya in June this year.
The company expects its financial performance to improve in the second half of 2021 as covid19 containment measures continue to be relaxed and entertainment activities return to pre-pandemic levels. The Board of Directors of Homeboyz Entertainment did not recommend an interim dividend for the first half of 2021.
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