Homeboyz Entertainment has reported a net loss of Kes22 million, for the year 2020, in its first public announcement of financial results since listing on the Nairobi Securities Exchange in December 2020. The loss is in sharp contrast to the net profit of Kes36.6 million reported in 2019.
The company, which heavily relies on revenue from events management and soundtraxx business, blames the loss on government restrictions that prohibited public gatherings for many months in 2020.
Its revenue plunged to Kes105.9 million at the end of 2020, compared to Kes311.5 million at the end of 2019.
Homeboyz instituted some cost-cutting measures which resulted in a 49% drop in direct costs and a 63% drop in administrative expenses. The company’s total operating expenses fell to Kes65.4 million in 2020 from Kes147.1 million in 2019.
“Homeboyz expects its financial performance to recover as the market opens, the COVID-19 crisis is mitigated, and the company implements its strategic plan to capture a wider market share in each of its existing core business lines and diversify revenue streams,” the company said in its financial report.
The company has ventured into new projects which are expected to generate additional revenue such as ‘providing virtual conference support services and production for TV broadcasting.’ Furthermore, in 2020, it secured contracts with the Kenya Rugby League, Safari Rally, E-Sports Federation of Kenya and the Magical Kenya Open.