Global Sources 2014 Revenues Flat, Profits Down
This week, NASDAQ-listed Global Sources reported its full-year revenues for the year ended Dec. 31, 2014.
Revenues in 2014 were US$198.2 million – similar to the US$197.5 million recorded in 2013. IFRS net income in 2014 was US$18.3 million down from US$32.7 million – representing a 44 percent decline in profits.
Revenues from its online platforms dropped nearly 11 percent, falling from US$104.6 million in 2013 down to US$93.3 million last year.
On the positive side of things, revenues from exhibitions increased from US$85.6 million to US$97 million. The company has no debt and US$98.5 million in cash.
The growth outlook for the first half of 2015 remains weak. First half revenues are expected to be between US$90 million and US$92 million.
Revenues in the first half of 2014 were US$92.8 million. Management expects first half earnings per share (IFRS) will be between US$0.15 and US$0.19 – that is lower compared with US$0.20 in the first half of 2014.
The company anticipates that its online share of total revenues will continue to fall in 2015.
Global Sources’ CFO, Connie Lai said, “We expect the revenue mix for the first half of 2015 to range between 50 percent and 51 percent for exhibitions, 38 percent and 39 percent for online… This compares to a first half of 2014 revenue mix of approximately 45 percent for online, 45 percent for exhibitions.”