Homeboyz Entertainment issues profit warning
By Moses Omusolo | March 9th 2021
Newly listed entertainment provider Homeboyz Entertainment is expecting its profit for the financial year ending December 31, 2020, to be lower than expected.
The profit warning comes against the background of a challenging business environment attributed to the COVID-19 pandemic.
Painting a picture of the difficult operating environment, Homeboyz Entertainment Chief Executive Myke Rabar said to remain competitive, the firm instituted many radical cost rationalisation measures, including instituting a hiring scheme based on active projects and innovative initiatives in the digital space to shore up revenues.
"In recognition of the foregoing, the Board of Directors would like to inform the investing public that based on the projected financial performance (as shared in Homeboyz listing statement) for the financial year ending December 31st, 2020, the net profit attributable to the shareholders of the company is expected to be lower as compared to a similar prior period, December 31st 2019,” said the firm in a statement.
Also carried in the notice dated March 8 2021 include the assurance of a turnaround pegged on several factors including the lifting of restrictions.
“Homeboyz expects its financial performance to recover as the market opens, the COVID-19 crisis is mitigated as the company implements its strategic plan to capture a wider market share in each of its existing core business lines and diversifies its revenue streams,” said Rabar.
The firm further noted, “Homeboyz has also secured contracts with the Kenya Football Federation, Kenya Rugby League, WRC Safari Rally, East Africa Motor Sports Club, The Superbike Association, E- Sports Federation of Kenya and the Magical Kenya Open.”
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