A peek into Nuffnang’s financials
Today, as I was updating my personal plans for 2015, I received news that misinformation about Nuffnang, one of Netccentric’s core businesses, has been spreading on social media.
I’m intrigued by the sudden interest in the financial aspects of our businesses, especially as we count down to the New Year, and thought it presented a WONDERFUL OPPORTUNITY to share, with those interested, MORE!
All information that I’m sharing with you today is publicly available, but the purpose of this clarification is to tell you WHERE to look. ☺
What is Netccentric?
Netccentric is the group of businesses that both Timothy Tiah and I founded in 2006. We started it with S$65,800.
- We have offices in Singapore, Malaysia, Thailand, Philippines, Australia, China and the UK.
- We have about 200 full-time employees.
- Netccentric has over a dozen social media-related subsidiaries including: Nuffnang, ChurpChurp, Ripplewerkz, Reelity.TV and, mobile blogging application, Dayre.
- We have not received any outside funding.
- We have no loans from banks or financial institutions.
- The company has grown organically using self-generated profits over the years.
- No further capital was injected, hence our paid up capital of Netccentric is still $65,800.
Below, is a simplified corporate organizational chart of our company.
Why talk about Netccentric when people are asking about Nuffnang?
Without doubt, Nuffnang is the most recognizable brand within the Netccentric group.
However, Nuffnang tells only one part of the story.
Because of how we have structured the companies, its financial health, and that of the group, can only be ascertained by understanding Netccentric Pte Ltd’s CONSOLIDATED group numbers.
WOW! Does that mean you are going to tell me how much Netccentric makes and has in the bank account?
The group has a complicated structure with lots of accounting and reporting lines.
There is no requirement for the group to be audited, so we only have internal consolidated numbers, which are for internal consumption.
Then what are you going to give us!!!???
I will give you just a snapshot of our business’s performance in two key markets: Singapore and Malaysia. (A significant proportion of our revenue comes from five other countries BUT I’m happy to share our Singaporean and Malaysian figures.)
Netccentric, Nuffnang, now Nom Nom???
As I mentioned before, we have over a dozen subsidiaries, so it’s not easy to explain.
But, in Singapore and Malaysia, ALL REVENUE that we make for NUFFNANG AND CHURPCHURP, is billed through NOM NOM MEDIA.
We consider revenue from Churpchurp as relevant, because Nuffnang sells our influencers’ blogs, but Churpchurp handles all their other social media platforms. Revenue from Reelity.TV is negligible at this point, since it is a startup.
Nom Nom Media, the official digital media reseller for Nuffnang and ChurpChurp in Singapore and Malyasia, is a fully-owned subsidiary of Netccentric.
Put another way, Nom Nom Media is the sales agent of Nuffnang and ChurpChurp in Singapore and Malaysia.
Below is a chart that illustrates the relationship between Nom Nom, Nuffnang, ChurpChurp, and ReelityTV.
As you can see, all money received for influencer marketing campaigns is billed through Nom Nom Media. The profit we make, therefore, does not rely on one company, but all three together. At the same time, our cash in bank balances, should be a sum of all three and not one.
Below a snapshot of the numbers. You’re welcome to purchase a full set from the official registries.
Nom Nom Media Malaysia- RM 10,894,902
Nom Nom Media Singapore- SGD 1,810,621
Nom Nom Media Malaysia- RM 358,585
Nom Nom Media Singapore- SGD 69,787
Cash in bank as of 31 December 2013*
Nom Nom Media Malaysia- RM 526,969
Nuffnang Malaysia- RM 157,338
ChurpChurp Media Malaysia- RM 226,928
Nom Nom Media Singapore- SGD 64,024
Nuffnang Singapore- SGD 26,899
Churpchurp Singapore- SGD45,421
*Numbers are based on 31 December 2013 accounts as audited by K J Tan & Co in Singapore and Ahmad Abdullah and Goh in Malaysia.
What about 2014?
2014 has been an extraordinary year for Netccentric.
We have seen GROUP CONSOLIDATED Revenues rise in excess of 25%! (I’m being conservative, because they are unaudited as yet.) Profits have seen EVEN BETTER growth.
All of this has been achieved on the back of a diversified business built on sound values and principles, a wonderful and dynamic young team, and our industry partners and clients.
Writing out this note at the end of the year with so much happening around us has left me in a pensive mood.
I am happy and proud of our achievements as a company, but all this must be taken in context of what is happening elsewhere.
I am proud that a staff-driven initiative for Malaysian flood relief has been executed on our Nuffnang Malaysian blog network just today. I do hope it will drive donations and awareness to our chosen partner charity, Mercy Malaysia.
In addition to that, I ask you all, to give a moment of prayer and thought for the families and loved ones of the victims on board Air Asia QZ8501.
I wish one and all, safe travels, a joyful New Year celebration with your families, and a splendid 2015.
Cheo Ming Shen
The Netccentric Group