Limners and Bards Limited (The LAB) is making an aggressive push into content ownership, positioning itself to capitalise on the global streaming boom even as profitability takes a short-term hit.

The company’s first-quarter results for the period ended January 31, 2025, revealed a 30.4 per cent surge in revenue to $286.1 million, driven by growth in its production and media segments. However, net profit fell 17.6 per cent to $21.6 million, reflecting higher costs and a strategic shift in focus.

With major streaming platforms like Netflix set to invest US$18 billion in content this year — an 11 per cent increase over 2024 — The LAB is doubling down on its investment in original productions. The company expanded its asset base by $178 million, largely from investments in owned content, a move it sees as critical for long-term revenue diversification.

“The global demand for fresh storytelling is growing, and we are positioning ourselves to be a key player in that space,” company founder and CEO Kimala Bennett said in the preamble to the company’s financial result.

Its “FIVE in 25” strategy — aiming to produce five feature films by 2025 — is already underway, with two films completed and negotiations ongoing with distributors. The latest project, a Christmas film featuring Kimberly Patterson (BET’s
Family Business) and Nick Creegan (SWAT, Law & Order), aligns with high-demand genres and aims to secure lucrative licensing deals.

To drive its next phase of growth, The LAB has strengthened its executive team, hiring a chief business development officer to spearhead new client acquisitions and strategic partnerships. The move signals an intent to expand beyond traditional advertising, reinforcing its evolution into a media powerhouse.

This leadership addition comes as administrative, selling, and distribution expenses climbed 11 per cent year-over-year to $7.6 million, largely due to the company’s investment in talent and service expansion. The company expects this investment to pay off as it pursues higher-margin business opportunities.

While revenue surged, gross profit margin slipped to 35.1 per cent from 40.6 per cent, as lower-margin production and media revenue outpaced the traditionally more profitable agency segment. Profit before tax declined by 3.6 per cent to $25.2 million, while net profit took a sharper hit due to increased operational costs.

However, The LAB maintains a strong financial position. Shareholders’ equity increased 5.8 per cent to $660.1 million, supported by an asset base exceeding $1.08 billion. The company remains focused on optimising receivables and cash flow, with accounts receivable rising by $118 million amid revenue expansion.

The LAB is also actively engaging with international buyers and distributors to expand its content footprint. As a sponsor at NATPE Global 2025, the company gained direct access to key players across North America, Latin America, and Europe, setting the stage for global distribution deals.

“With the right partnerships and a slate of market-driven productions, we are building a sustainable model that extends beyond advertising into high-value entertainment,” Bennett noted.

— Karena Bennett