Company Overview

NoonTalk Media Limited is a Singapore-based media entertainment company that specialises in artiste and talent management, multimedia, film and drama production as well as event conceptualisation and management. Carving out a niche for itself in Chinese-language media productions, the company aims to be Singapore’s leading media agency, creating high-quality bespoke entertainment content with the objective to inspire a vibrant media landscape. 

1. NoonTalk Media is a Media Entertainment provider, could you elaborate on the products/services that you provide for clients?

• NoonTalk Media is a Singapore-based media entertainment company that specialises in artiste and talent management, film and drama production as well as event conceptualisation and management. The Company focuses on two key business segments:
  
  o Management and Events – comprises services relating to the management of (i) artistes and talent, (ii) events and projects, and (iii) studio venue and equipment.
  
  o Production – Provides Services Relating to Multimedia, Film and Television, and Video Production.

2. What Were Some Considerations for An Initial Public Offering?

• Embarking on an IPO allows NoonTalk Media to achieve its business strategies and path the way for future growth. Specifically, through the IPO:
  
  o NoonTalk Media will be able to raise capital to pursue regional collaborations and explore new partnership opportunities across the Asia Pacific region, bolstering its existing service offerings in the production of dramas and movies. In addition, the Company will dedicate resource towards nurturing and expanding its portfolio of artistes to strengthen its market leadership position.
  
  o The branding associated with a listed company provides NoonTalk Media with enhanced recognition and reputation, which will facilitate expansion through mergers and acquisitions, joint ventures, and strategic investments when the time is right.

3. What Is the Competitive Edge for NoonTalk Media Over Your Industry Peers?

• The Company possesses strong on-site capabilities spanning the entire entertainment value chain – artiste and talent management, multimedia, film and drama production, as well as event conceptualisation and management. Its comprehensive range of media production solutions, coupled with its ability to adapt, expert knowledge of the industry, and strong industry relationship, makes it the company of choice for organisations looking for a service provider to deliver exceptionalservices and out-of-the box solutions.

• It is a one-stop service provider in the media production industry with the capability to offer end-to-end solutions, encompassing both traditional and new media. It has handled over 200 live-stream shows, demonstrating its capability to adapt to changing trends and provide cutting-edge solutions.

• The Company is helmed by a seasoned veteran in the local entertainment scene, Mr. Dasmond Koh (CEO of NoonTalk Media), who is well-connected in the entertainment industry across Asia. Some reputable clientele of the company include Mediacorp, the People's Association, and renowned brands like Asics, Puma, Audi, and Marina Bay Sands.

• NoonTalk Media's comprehensive range of media production solutions, coupled with their adaptability, industry expertise, and strong client relationships, make them the go-to choice for businesses and organisations in need of exceptional media production services.

4. Describe NoonTalk Media’s Recent Financial Performance.

• NoonTalk Media's 1H2023* revenue was S$2.0 million, a 11% decline from the S$2.2 million in 1H2022. This was primarily attributed to a dip in artiste engagement in the Management and Events segment. The resumption of physical live events in 1H2023 led to increased costs associated with the use of external vendors, resulting in a decrease in the Gross Profit margin from 16.1% in 1H2022 to 9.5% in 1H2023. Consequently, the company’s gross profit declined from S$0.36m in 1H2022 to S$0.19m in 1H2023.

• Excluding one-off listing and associated expenses of S$1.5m, the company’s net loss would have been S$0.6m in 1H2023, a 2.0% improvement over the previous corresponding period.

• Following its successful IPO last year, NoonTalk Media’s net cash position stood at S$5.5m as at end of 1H2023. This will provide the company with the necessary capital to pursue regional collaborations and engage in other creative endeavours in the foreseeable future.

5. How Has the IPO Last Year Benefited the Company?

• The company has benefited from the IPO funding process with net proceeds of S$3.2 million, which will be used to fund its growth initiatives. Some of these initiative include expanding the artiste and talent management business, investing in new production capabilities, developing new content formats and expanding into new markets.

• To date, the Company has utilisatised c.S$1.0 million from its IPO proceeds for the production of the movie titled “The Chosen One (流氓驱魔师)”, a collaboration with another Singapore production company Oak3 Films. The Company believes that this project will extend its regional footprint and leadership in film and drama production.

6. Are There Plans to Enhance the Geographical Reach of the Business to Generate Greater Revenue?

• The Company has established extensive relationships in China and Thailand. It will continue to explore collaborative partnerships and opportunities to expand its regional footprint across Asia Pacific.

• Such regional partnerships will include movie and drama collaborations geared towards showcasing NoonTalk Media’s pool of artistes to strengthen market leadership as well as bolster its service offerings.

• In June 2022, the Company co-produced the movie “The Antique Shop”, with a Thai production company - LeayDoDee Studio - featuring artistes from Singapore, Korea, Indonesia and Thailand. The Company is also funding the production of a movie titled “The Chosen One”, in collaboration with Oak3 Films and in partnership with Current Pictures Sdn Bhd (a renowned content creation and feature film company in Malaysia), featuring a strong cast from Singapore, Taiwan and Malaysia.

• These collaboration efforts have allowed the company to achieve greater recognition and cultivate new relationships with key players in the television and film industry. NoonTalk Media also has plans to expand geographically through strategic acquisitions of overseas production and post-production companies.

7. What Are Some Notable Developments for NoonTalk Media in the Medium Term?

• Engage in greater regional collaborations and expand regional artiste base to enhance branding: NoonTalk Media will explore new markets such as Korea and Hong Kong to expand its market presence and capitalise on the increasing demand for comprehensive media services. The Company aims to create new production opportunities and expand its portfolio of artistes by representing regional artistes from acrossthe Asia Pacific region.

• Inorganic growth through acquisitions and strategic investments: NoonTalk Media intends to drive long-term growth through strategic investments and acquisitions in production and post-production companies in Southeast Asia. The Company’s regional productions have led to discussions with other partners for potential investments and collaborationsin the film and drama, as well as event and concert space.

• Diversify into new business opportunities: NoonTalk Media aims to diversify its operations by forging partnerships with companies in relevant industries, including Meetings, Incentives, Conferences, and Exhibitions (MICE) events and concert promoters. Through such collaboration efforts, the Company hopes to extend its scope of service offerings and expand its geographical reach.

8. What Are Some Risks That the Business Is Facing/likely to Face and How Are You Mitigating Them?

• Uncertainty in securing large-scale contracts: A significant proportion of the Company’s revenue comes from large-scale events and projects which are usually awarded by way of a tender. There is no assurance that it will continue to successfully bid and secure contracts on similar terms through such a competitive process. To mitigate this, the Company is diversifying its client base, actively participating in tender bids, enhancing competitive edge via innovation and quality service, and maintaining strong relationships with existing clients.

• Impact from exceptional events: Exceptional events such as another disease outbreak could lead to cancellation of large-scale projects and adversely affect NoonTalk Media's profitability. The Company continues to hone its capability in new digital medium to remain agile and adapt to changing circumstances and business environments.

• High dependency on third party platforms: The Company is reliant on third party distributors such as TV networks, video streaming and social media platforms for broadcast and distribution of its media productions. This will also determine the commercial success of its productions. In the event that the Company is not able to obtain the necessary permission to broadcast on these platforms or to influence a positive production release, this could have material impact on its operations, financial condition and prospects. The Company tries to mitigate this by constantly engaging with such third-party platforms to establish a close working relationship, on top of undertaking a strong marketing campaign to promote and publicise its productions.

9. Could you share some of the key ESG factors that are material to NoonTalk Media and how that can create long-term value for your stakeholders?

• NoonTalk Media recognises the importance of environmental sustainability and has implemented strategies to reduce carbon footprint and adopt environmentally friendly practices. The Company utilises motion sensor controlled lighting and energy-efficient lighting in its office and production facility. It also uses non-toxic ecofriendly paint for its office.

• In addition, the Company places a strong emphasis on corporate social responsibility and makes a conscientious effort to undertake projects with strong social impact. Some examples include the Company’s involvement in ChildAid 2020 and 2021 (a charity concert in aid of The Straits Times School Pocket Money Fund and The Business Times Budding Artists Fund) as well as being a media partner for EnableAsia to promote awareness in dementia.

• NoonTalk Media also strives to provide a fair and safe work environment and ensures that its employees are treated with respect and integrity. It fosters the development and growth of an inclusive and multi-generational workplace with the omission of age-based hierarchy, ensuring that everyone is empowered to deliver their best work.

10.What is NoonTalk Media’s value proposition to its shareholders and potential investors? What do you think investors have overlooked?

• NoonTalk Media believes that its value proposition to shareholders and potential investors extends beyond being solely an artiste management company. While the Company’s artistes, being public figures, receive significant publicity, there are other aspects of the business that investors may have overlooked, particularly its production and event managementsegments.

• The Company has demonstrated a strong growth track record, with its revenue increasing from S$3.0 million in FY2020 to S$6.4 million in FY2022. This translates to a compounded annual growth rate (CAGR) of 44.7%, primarily driven by the Production segment, which achieved a remarkable CAGR of 70.1% CAGR from FY2020 to FY2022.

• The production segment is expected to continue its growth trajectory with regional projects in the Company’s pipeline, positioning NoonTalk Media as a market leader in the Asia-Pacific media, film, and entertainment industry. “The Chosen One” production represents a significant milestone in the Company’s ability to capitalise on the trends in the media and entertainment industry.

• Furthermore, NoonTalk Media is well-positioned to benefit from the growth of over-the-top (“OTT”) platforms, enabled by 5G technology. According to Bonafide Research, the trend of 4K video streaming in OTT platforms is projected to have a CAGR of 15.7% from 2023 to 2028. NoonTalk Media can leverage strategic partnerships, joint ventures, and acquisitions to tap into the large Chinese language media and entertainment OTT market (mandarin speaking population is more than 1.2 billion in the Asia-Pacific region).

10 in 10 – 10 Questions in 10 Minutes With SGX-listed Companies

Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through a series of 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers as well as the industry landscape. Expect to find wide-ranging topics that go beyond usual company financials.

This report contains factual commentary from the company’s management and is based on publicly announced information from the company.

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For more company information, visit https://noontalk.com/ Click here for NoonTalk Media’s 1H2023 Financial Results. Note that NoonTalk Media's financial year is from 1 Jul 2022 to 30 Jun 2023. As such, 1H2023 refers to the half year period ended 31 Dec 2022.