NoonTalk Media defends business strategy after auditor raises concerns about losses

SINGAPORE: Media entertainment company NoonTalk Media on Monday (Oct 27) defended its business strategy after an independent auditor flagged concerns about its financial performance and ability to sustain operations.

NoonTalk Media, led by former DJ Dasmond Koh, incurred a net loss of S$1.8 million (US$1.39 million) and net operating cash outflows of S$0.9 million for its 2025 financial year, which ended on Jun 30.

This is the third consecutive year that NoonTalk Media has failed to make a profit since listing in 2022.

Its accumulated losses had reached S$9.16 million as of Jun 30.

According to the auditor's report on Oct 16, the financial numbers "indicate the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern".

This prompted the Securities Investors Association (Singapore), or SIAS, to raise questions about NoonTalk Media's plans to achieve profitability, its cost structure, as well as how the board exercises its oversight duties.

PLANS TO BECOME PROFITABLE

Addressing the questions from SIAS, NoonTalk Media pointed to projects such as the Golden Singa Awards, an international event in December that recognises outstanding achievements for Chinese-language films.

“The Golden Singa Awards will be an international yearly event that will ensure a steady cash flow for the Group as it develops,” it said in a statement on the Singapore Exchange. 

It added that the event is expected to contribute to the company’s financial performance over the medium term rather than immediate profit.

NoonTalk Media also highlighted micro-drama and other collaborative projects as part of its growth strategy. 

Micro-drama episodes last around one to two minutes each, and are designed specifically for mobile viewing. It is a form of content that has taken the Chinese market by storm in recent years.

“While the micro-drama ecosystem is more developed in regional markets such as China, with billion-dollar revenues projected for 2025, Singapore’s micro-drama industry remains in its early stages but is showing promising growth since early 2025,” said the company.

“NoonTalk Media’s extensive artiste network and comprehensive in-house production capabilities distinguish itself from smaller independent studios, enabling more cost-effective and scalable development.”

Founded by Mr Koh in 2011, NoonTalk Media specialises in artiste and talent management, multimedia production and events. 

The company said it has developed a slate of micro-drama productions in collaboration with strategic partners, with launches planned within the current financial year.

COST CONTROLS

SIAS noted that NoonTalk Media’s administrative expenses had “significantly” exceeded gross profits, indicating “potential inefficiencies in cost structure and scalability”.

The company’s cost of sales, which includes staff and subcontracting costs, was more than S$5.7 million for FY2025, up from about S$4.3 million in the previous year.

Giving a breakdown of the cost of sales, NoonTalk said staff costs under the costs of sales had decreased. It fell from from S$2.1 million in FY2024 to S$1.7 million in FY2025, as "management continues to carefully streamline manpower".

Subcontracting costs, however, almost doubled, rising from S$2.1 million in FY2024 to S$4 million in FY2025.

According to the company, it has shifted towards contract and project-based roles over the past three years to better manage manpower and resources, with headcount falling from 61 to 40.

“Like any other industry in Singapore, the Group also faced inflationary salary levels over the past few years,” it said. “Management maintains a rigorous screening process and continues to explore opportunities to retain and attract suitable talent.”

NoonTalk Media said it reduced staff costs by 12.7 per cent in total in FY2025, touting it as a significant achievement despite cost pressures, given the increased revenue and gross profit.

The company added that its board and management team have implemented a "structured cost transformation plan with measurable milestones and accountability".

“Significant cost savings are expected to materialise in FY2026, with rental expenses being a major contributor to the reduction,” said NoonTalk Media.

BOARD’S OVERSIGHT DUTIES

Noting the company’s financial performance for the past three years, SIAS questioned how NoonTalk Media's board had exercised its oversight duties and evaluated its own effectiveness.

In response, Noontalk Media said its board was operating amid a challenging environment that has evolved post-pandemic, especially with the advancement of new technology in the edutainment and media industry.

The board had “actively engaged with key management" over the past three years to implement cost optimisation initiatives, leading to reduced losses and improved revenue, said the company

“These efforts have resulted in improved revenues from S$4.4 million to S$6.3 million and reduced losses for FY2024 and FY2025, respectively,” it said.

NoonTalk added that the board continuously monitors NoonTalk Media’s long-term value creation and sustainability, conducting regular self-assessments.

“The board remains committed to making the necessary structural and strategic adjustments beyond business as usual to strengthen stakeholder confidence and ensure long-term resilience,” it said.