LIVESTREAMING platform operator 17Live reported a net loss of US$129.7 million for the second half ended December 2023, widening from the previous year’s H2 net loss of US$9 million.

On Wednesday (Feb 28), the group said that this comes after factoring in US$130.4 million in non-operating expenses versus just US$18 million in H2 FY2022, along with non-cash revaluation losses on financial liabilities at fair value. 

The latest half-year period’s non-operating expenses were incurred mainly from its business combination with Vertex Technology Acquisition Corp (VTAC).

Operating revenue for H2 fell 21.7 per cent year on year to US$127.9 million, while total operating expenses dropped 1 per cent to US$51.1 million.

Loss per share (LPS) widened to US$0.0224 from US$0.004 in H2 FY2022, and amounted to US$0.0614 for the full-year period versus an LPS of US$0.0226 in the prior year.

For FY2023, the group’s net loss stood at US$247.9 million as opposed to the US$51 million loss reported the previous year.

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Operating revenue declined 23.3 per cent to US$278.9 million, which the group attributed to a shift in focus towards higher-margin revenues and returns on investment.

Intense competition in the livestreaming business resulted in some competitors offering higher rates of streaming fees to streamers, it added.

The group also noted that its e-commerce offering OrderPally turned in a “solid segmental profit”.

Joseph Phua, chief executive and executive chairman of 17Live, said that the group’s transition into a listed entity through its combination with VTAC “created complexities” due to one-offs and non-cash items in its FY2023 financial results.

The merger nonetheless “spearheaded the group’s growth trajectory in 2024”. “Importantly, gross margins have continued to increase and impressive Ebitda (earnings before interest, taxes, depreciation and amortisation) growth reflects the strong cash flow we continue to achieve in our business.”

Excluding the net effects of one-offs, the group posted an adjusted FY2023 Ebitda increase of 26 per cent to US$20 million versus FY2022’s actual Ebitda of US$15 million.

Gross profit margin for the year improved to 41.2 per cent from 34.7 per cent in FY2022.

Shares of 17Live : LVR 0% were trading S$0.08 or 5.4 per cent lower at S$1.39 as at 9.51 am on Wednesday, after the release of its results announcement.