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FGH NYSE AM· FG Group Holdings Inc
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FGH NYSE AM· FG Group Holdings Inc
Earnings report Q3 2023

FG Group Holdings Inc. Reports Strong Revenue Growth in Q3 2023

Segments of revenue

In the third quarter of 2023, FG Group Holdings Inc. reported total net revenues of $11.1 million, compared to $10.3 million in the same period last year. Net product sales amounted to $8.0 million, showing a slight increase from $7.7 million in Q3 2022. Net service revenues also saw growth, reaching $3.1 million, compared to $2.6 million in the previous year.

Strengths

FG Group Holdings Inc. demonstrated strong revenue growth in the third quarter of 2023. The company's net revenues for the nine months ended September 30, 2023, increased to $39.2 million, a significant rise from $29.4 million in the same period in 2022. This growth was primarily driven by the performance of the Strong Entertainment segment, which experienced a revenue increase of 36.1% to $38.7 million in the first nine months of 2023. The company's management attributed this growth to various factors, including higher overall gross margin from cinema services and improved gross margin on installation services.

Challenges

Despite the overall revenue growth, FG Group Holdings Inc. faced challenges in certain areas. Other segment revenues declined by 48.1% to $0.5 million in the first nine months of 2023, compared to $1.0 million in the same period last year. This decrease was primarily due to the expiration of an agreement covering support services provided to Firefly, which expired at the end of 2022.

Noteworthy

FG Group Holdings Inc. recorded a net loss attributable to the company of $3.3 million, or $0.17 per basic and diluted share, in the third quarter of 2023, compared to a net loss of $2.2 million, or $0.11 per basic and diluted share, in the third quarter of 2022. The company also reported a loss on its FGF Holdings equity method holding of $4.4 million in the first nine months of 2023, compared to $2.6 million in the same period last year. Additionally, FG Group Holdings Inc. ended the third quarter of 2023 with total cash and cash equivalents of $3.5 million.

Summary

FG Group Holdings Inc. delivered strong revenue growth in the third quarter of 2023, driven by the performance of the Strong Entertainment segment. Despite challenges in the Other segment, the company's overall net revenues for the nine months ended September 30, 2023, showed significant improvement compared to the same period in 2022. However, the company reported a net loss in the third quarter and the first nine months of 2023. FG Group Holdings Inc. will need to address these challenges and focus on improving profitability in order to sustain its revenue growth.

Source documents

Form 10-Q  filed on Nov 14, 2023
87 pages scanned

Reference data

Company financials Q3 revenue 11.8M
Analyst estimates Q3 EPS missed by NaN%
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