Yehuda Minkwitz (Photo by Ron Kedmi)
Pomwom beats early forecasts with annual revenues of NIS 131 million. The company suffered in 2020 from the closure of the amusement parks which caused it not to launch its product however returned to business in 2021 when the parks reopened with the removal of worldwide crowd restrictions.
The company’s data show that revenues in the second half of the year amounted to NIS 104 million, a growth of 284% compared to revenues of NIS 27.2 million in the first half of 2021. The company’s revenues in 2021 as a whole amounted to NIS 131.2 million, an increase of About 87% – about NIS 61.2 million – in relation to the revenue forecast of about NIS 70 million in 2021 as a whole. The company’s revenues for 2021 reflect growth of approximately 351% compared to revenues of approximately NIS 29.1 million in 2020.
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The company stated that in 2020 most of the company’s revenue came from its operations in Europe, prior to the acquisition of Picsolve Inc., a subsidiary in the United States, and that the company’s operations are characterized by seasonality, which peaks during the months of April to October.
In geographical segmentation, the Company’s revenues in Europe in the second half of 2021 amounted to NIS 76.8 million, a growth of 312% compared to revenues of NIS 18.5 million in the first half of 2021. The Company’s revenues in Europe in 2021 as a whole amounted to NIS 95.3 million. An increase of about 227% compared to revenues of about NIS 29.1 million in 2020.
Revenues in the United States in the second half of 2021 amounted to NIS 27.3 million, a growth of 217.4% compared to revenues of NIS 8.6 million in the first half of 2021. The Company’s revenues in the United States in 2021 (from the date of joining the acquired activity in April to To the end of 2021) amounted to NIS 35.9 million.
Despite the impressive increase in PomWom’s revenue, its bottom line is still problematic. For example, in the second half of the year, the company recorded an operating profit of about NIS 1 million, compared with an operating loss of about NIS 11.8 million. The company marks the transition to operating profit in the second half of the year due to an increase in revenue in the second half of the year as a result of the recovery from the corona crisis and strong seasonal activity during the summer months. The operating loss in 2021 decreased by 32.9% and amounted to NIS 10.8 million, compared with an operating loss of NIS 16.1 million in the corresponding period last year.
The total loss in the second half of 2021 decreased and amounted to NIS 824,000, compared to a total loss of NIS 11.9 million in the first half of 2021. The total loss for 2021 is small to NIS 12.7 million, compared to a total loss of NIS 16.3 million In the same period last year.
Yehuda Minkowitz, CEO of PomWom, said: “We conclude a year of multi-business development, in which we became a public company, acquired a US company to expand our portfolio of sites and signed substantial contracts with Merlin and Warner Bros. establishing our operations in Europe and the US.
Most of the revenue came from operations according to the “old” model and still does not include revenue from digital implementations in parks. This year we focused on operational efficiencies, which led to a significant improvement in gross profit and reduced operating loss, First parks in Europe and the USA. The implementation process is carried out in stages, in a hybrid model of Digital and Print, in order to avoid as much as possible the cannibalization of revenues.
Preliminary data in some parks indicate an improvement in the conversion rate, significant savings in operating costs and a reduction in visitor waiting times for photos and video.
“The company’s main goals for the coming years are to implement extensive digital assimilation on existing sites, enter into new strategic contracts, with an emphasis on the US market, and expand into other markets. We thank investors for their continued expression of trust in the company, which is reflected in 94% of the series. Series 1 stock options.
“We estimate that the cash balances in the company’s coffers, which currently stand at a total of NIS 56 million, and the continuation of the recovery trend from the corona crisis, position us well to achieve the company’s goals and continue to grow.”
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