Homeboyz Entertainment Plc on Monday, August 30 released its financial results for the six months to June 2021. The entertainment, production and events company bounced back into profit-making territory despite being hit hard by the pandemic since March last year.
For H1 2021, Homeboyz posted a net profit of Ksh2.3 million, up from a net loss of KSh3.8 million in the same period in 2020. Its revenues, however, fell 4% to KSh63.3 million from Ksh66.2 million in H1 2020.
The firm noted that it continued to feel the impact of the Covid-19 pandemic which has deeply affected the entertainment and events sectors. However, it highlighted that the improved performance in H1 2021 was driven by key contracts including World Rally Championship (WRC), Kenya Open and Football Kenya Federation (FKF).
The WRC Safari Rally held in Naivasha in July was one of the biggest sporting events of the year, as was the Kenya Open tournament hosted in Karen in March.
The curtains also just fell on the 2020/21 Football Kenya Federation (FKF) Premier League season with Tusker FC crowned champions.
“Revenues picked up, albeit modestly, driven by contracts with FKF, Kenya Open and WRC. Cost to income ratio increased driven primarily by discounted pricing in response to the difficult economic environment,” Homeboyz noted in a statement.
In H1 2021, the firm lowered its direct costs by 10% compared to the same period last year – falling from Ksh29.6 million to Ksh26.8 million.
Administrative costs also reduced significantly, from Ksh25.5 million in H1 2020 to Ksh12.8 million in H1 2021.
Homeboyz Entertainment’s Board of Directors did not recommend an interim dividend for the first half of 2021.
The company, however, is looking forward to improved performance in the coming months with Covid-19 measures including restrictions on entertainment and events expected to gradually ease.
“Homeboyz expects its financial performance to improve as the market opens and the COVID-19 situation is mitigated with the rolling out of vaccines and relaxation of containment measures. The company continues to proactively identify and implement changes to its business model to achieve greater sustainability,” the firm noted.