The declaration of an interim dividend of 1.5 cents for the 1HFY2025 was also a positive surprise given 17Live’s status as a growth company in the tech space.
“Management noted that dividends indicate the company’s confidence in its business fundamentals towards further revenue and profitability growth,” Chan writes. “Share buybacks since December 2024 may also provide a form of share price support. The 17LIVE Forward Strategy targets three pillars: core business strengthening, revenue diversification, and strategic partnerships.”
Other positives noted by Chan include 17Live’s net cash position of US$81.5 million ($105.8 million) with almost zero debt. The amount represents about 46.9% of the company’s total market capitalisation of $173.8 million as at Oct 14.
Going forward, the analyst notes that the company is focused on expanding its complementary businesses in V-liver livestreaming and e-commerce. Per his report, 17Live is also looking to continue to tap on its technological capabilities to explore new opportunities in virtual gifting and to improve its artificial intelligence (AI)-powered Co-Host functionality.
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In addition, he notes that 17Live is actively organising more offline events in a bid to increase virtual gifting opportunities and provide a top-line boost.
As at 9.54am, shares in 17Live are trading 0.5 cents higher or 0.52% up at 97 cents.
