New Media Lab Reports HK$4.21 Million Interim Profit as Digital Advertising Softens

Bulletin Express
Sep 14

New Media Lab announced unaudited results for the six months ended 30 June 2026, posting total revenue of HK$85.84 million, down 5.94 % year-on-year. Digital advertising contributed 97 % of turnover, generating HK$83.25 million versus HK$88.24 million a year earlier, while print advertising and circulation slipped to HK$2.60 million.

Net profit fell 28.56 % to HK$4.21 million, translating into basic earnings of HK0.70 cent per share. The board declared an interim dividend of HK1.40 cents, compared with HK1.67 cents for the prior-year period.

Cost discipline helped offset softer revenue: total employee expenses edged 0.92 % lower to HK$44.06 million, and production costs were broadly stable at HK$22.79 million. Depreciation and amortisation declined 22.53 % to HK$5.85 million following reduced capital expenditure.

Liquidity remained strong. As at 30 June 2026, cash and cash equivalents stood at HK$136.29 million with no bank borrowings, giving a gearing ratio of 0.50 %. Current assets were HK$183.56 million against current liabilities of HK$27.72 million, lifting the current ratio to 6.6 from 5.8 at year-end 2025. Net cash from operating activities was HK$7.78 million, while dividend and lease payments drove HK$20.77 million of outflows in financing activities.

Trade receivables declined to HK$43.19 million, and HK$15.21 million had been collected by mid-August. Management noted only HK$1.09 million of receivables were credit-impaired, with impairment assessments unchanged from the year-end methodology.

Since its July 2023 listing, the company has deployed HK$49.60 million, or 47.90 % of its IPO proceeds, primarily into expanding product lines and building an in-house content platform. HK$53.90 million remains earmarked for technology upgrades and potential M&A through 2027.

The group continues to operate 11 media brands and highlights cost-controlled sales operations, with cost of sales on non-programmatic advertising maintained at 7.6 % of related revenue. Management plans to leverage automation and AI to improve campaign efficiency and pursue collaborative advertising projects to bolster revenue growth.

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