Homeboyz Entertainment’s half-year net profit for the period ending on 30th June, 2021 has increased to Ksh. 2.3 million from a net loss of Ksh. 3.8 million reported in a similar period last year.
The company reported the improved performance is its second release of financial statements since it was listed on the Nairobi Securities Exchange (NSE) in December 2020.
Homeboyz posted an increase in net profit despite its revenue declining in the six-month period. Its revenues fell by 4% to Ksh. 63.3 million from Ksh. 66.2 million in June 2020.
The entertainment firm managed to lower its direct costs to Ksh. 26.8 million in the first half of this year, a 10% drop from Ksh. 29.6 million in the first half of 2020. Administrative costs also decreased to Ksh. 12.8 million from Ksh. 25.5 million in the period under review.
Homeboyz stated that its financial performance in the first six months of this year was adversely affected by the COVID-19 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 is however, hopeful of an improved financial performance in the second half of 2021 as COVID-19 containment measures continue to be eased and entertainment activities return to pre-pandemic levels. Owing to the economic uncertainty ahead, the Board of Directors of Homeboyz Entertainment did not recommend an interim dividend for the first half of 2021.
Homeboyz Entertainment PLC listed on the Nairobi Securities Exchange (NSE) under the Growth Enterprise Market Segment (GEMS) in December 2020. Under the listing, Homeboyz listed 63.2 Million shares at a price of Ksh 4.60 per share under the ticker HBE.