Code Fellows deal boosts iCreate’s bottom line

In its third quarter, iCreate Limited benefitted from a revaluation surplus of $7.1 million from its agreement with Code Fellows to acquire the licence to deliver coding and data security courses in Jamaica, hence reducing losses year-to-date.

iCreate listing on the Junior Market of the Jamaica Stock Exchange in February 2019.

In September 2020, the creative training company signed a deal with the US-based computer training school, Code Fellows, to expand iCreate’s course offerings to include software development, ops and cybersecurity.

For the quarter ended September 30, the company recorded revenue of $7.8 million in Q3, a decrease of 52 per cent when compared to the corresponding period in 2019.

The period’s losses were $5.3 million versus a loss of $3.1 million for the similar period in 2019.

The revaluation surplus of $7.1 million from its licence agreement with Code Fellows boosted these results.

iCreate is a subsidiary of eMedia Interactive Group Limited. It offers degree and certificate courses advertising, film, animation, graphic design, mobile games, fashion design and more.

For the nine-month period ended September 30, 2020, revenue was $46.16 million, an uptick of 13.8 per cent, compared to $41.4 million for the same nine month period in 2019.

CEO Tyrone Wilson, in comments attached to the report, said the start of one of the company’s major partnerships was delayed and that the company had to depend on business-to-consumer (B2C) market to record revenue during the third quarter.

The company, meanwhile, restarted classes while adhering to social distancing protocols in addition to expanding virtual classes.

The company also continues to work with companies such as Heart Trust/NTA.

For the nine-month period, operating profit was $0.36 million, reversing the loss of $11.4 million for the same period in 2019.

Total comprehensive income of $4.8 million was a turnaround from the $12.5 million in losses made for the same period in 2019.