HONG KONG - VS Media Holdings Limited (NASDAQ:VSME), a company specializing in digital creator networks, has announced a new share repurchase program and several strategic partnerships aimed at expanding its market presence. The update was provided by Founder and CEO Ivy Wong in a recent shareholder update.
The company's board has approved a 10b-18 share repurchase program, authorizing the purchase of up to 500,000 Class A Ordinary Shares over a one-year period. This move comes as VS Media reported a solid financial performance for fiscal year 2023, with an 8 million dollar revenue and a projected 20% revenue growth for fiscal year 2024.
VS Media has also entered into a strategic investment with Los Angeles-based creative venture studio MeeshQ, aiming to connect MeeshQ's talents with VSME's emerging local brands in the Asia Pacific. The collaboration is set to launch global ventures featuring high-profile American talents in the region, with VS Media as MeeshQ's exclusive partner in Asia Pacific.
Furthering its offline engagement, VS Media partnered with The Pinkfong Company and King Parrot Group to launch a family-oriented VS Lounge in Hong Kong, supported by the Hong Kong Tourism Board. This event is part of the company's strategy to explore revenue growth opportunities in offline events.
In addition to these developments, the company expanded into Macau in October 2023, enhancing its digital marketing, influencer engagement, and content creation capabilities. The expansion has already led to successful marketing campaigns with several Macau-based entities, including the Macau Tourism Board, Galaxy Entertainment Group (OTC:GXYEF), and Wynn Resorts (NASDAQ:WYNN) Macau.
These strategic moves are part of VS Media's efforts to adapt to the evolving digital economy and consumer needs. With a growing network of over 1,500 digital creators and partnerships with over 1,000 brands, the company continues to focus on content-driven social commerce and localized marketing services across the Asia Pacific.
The information for this update is based on a press release statement from VS Media Holdings Limited.
InvestingPro Insights
As VS Media Holdings Limited (NASDAQ:VSME) embarks on strategic initiatives to enhance its market presence, it's important for investors to consider the financial health and stock performance of the company. According to InvestingPro, VSME is navigating a challenging financial landscape, as evidenced by a significant decline in stock price over the past year, with a 1 Year Price Total Return of -91.02%. This downtrend is consistent with the 6 Month Price Total Return showing a decrease of -50.07%, underscoring the stock's struggle to maintain investor confidence.
Furthermore, the company's Gross Profit Margin for the last twelve months as of Q4 2023 stands at 20.52%, reflecting a potential concern for investors given that VSME is reported to suffer from weak gross profit margins, as per InvestingPro Tips. This is a key metric as it indicates how efficiently the company is managing its production costs relative to its revenue.
Despite the recent initiatives and partnerships, the company's financial data suggests that it is quickly burning through cash, with a negative Operating Income Margin of -80.27% for the same period. This could be a red flag for investors considering the sustainability of the company's growth plans.
Investors looking for a deeper dive into VSME's financials and stock performance can find additional insights on InvestingPro. There are 11 more InvestingPro Tips available, which could help in making a more informed investment decision. For those interested in subscribing, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a comprehensive suite of investment tools and analytics.
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