Redbubble wants to expand partnerships with leading fan art brands

Joyce Abaño

29th Aug 2019

E-commerce company Redbubble said it plans to launch and expand partnerships with the world’s leading fan art brands and grow its customer base.

The retailer, which sells thousands of unique art and designs that customers can have printed on a wide range of products, said it now wants to target long term growth in a large addressable market and grow its customer base and increase loyalty through personal “creative adventures” and member experiences.

The company also wants to build deeper relationships with authentic artists by increasing their commercial success and launch and expand partnerships with the world’s leading fan art brands.

In its FY19 unaudited results released last month, the e-commerce company had said it will no longer provide specific short-term financial guidance.

In its recent report and full year update, the company has confirmed its increase on operating profit of $3.8 million in FY19, up from a $3.8 million loss in FY18. It posted a lift in revenue 41 per cent year on year (34 per cent on a constant currency basis) to $257 million.

The company reported an income tax expense of $15.2 million resulting predominantly from management’s position to write off the deferred tax asset as communicated previously and a net loss after tax of $27.7 million compared to $10 million in FY2018, mainly due to the write off of the deferred tax asset.

Gross profit increased 48 per cent year on year (41 per cent on a constant currency basis) to $95 million, and gross profit margin was up 1.8 percentage points to 36.8 per cent.

Cash operating expenses, which exclude non-cash share-based payments, currency gains/losses and the $1.2 million one-off costs associated with its acquisition of TeePublic in October 2018, were up 25 per cent year on year (20 per cent on a constant currency basis) to $64 million.