Yuuzoo Corp’s first-quarter net profit fell 13 per cent to S$11.2 million, or 1.45 Singapore cents per share, as the company lost a major client and adopted a more conservative accounting policy.
The social commerce company said revenue fell 58 per cent to S$18.9 million for the three months ended March 31. Yuuzoo lost a major client of wholly-owned subsidiary YuuPay, which hit e-commerce and payment revenue.
Yuuzoo, which may accept equity of its franchisees instead of cash as payment for franchise fees, said it no longer recognises its valuation of that equity as revenue, only a “one-time franchise fee based not on valuation but on Yuuzoo’s cost of developing the franchise packages Yuuzoo sells”.
Yuuzoo Corp closed at: S$0.071