Even though UA MULTIMEDIA INC (OTCMKTS:UAMM) reported a whopping hike of 122% in its net revenues, but still its stock has continued to be trading below the average level in the market. The last day’s closing price was $0.0270, a decline of 20.39% in one day. The primary reason for this unexpected plunge is nothing but the volatility in the market.
It announced the financial results for the previous year ended December 31, 2014. The major highlight of the announcement was the whopping increment in the revenues. As per the reports, net revenues of the company touched $151,750 mark in the last year as compared to $61,900 in the year before. The 122% hike in the net revenues mainly due to increased presence of company’s web development wing and higher sales of the film production services and products.
Even though UA Multimedia witnessed higher revenues, but its expenses also surged by a great margin. As per the reports, operating expenses of the company elevated by 80% in the previous year and touched $108,236 mark. Year 2014 brought a lot of challenges for the company as it had to face huge competition in the country. In order to survive that phase, UA Multimedia had to invest huge money in business development and marketing activities. The investment led company to a good position in terms of revenues, but increased its operating expenses at the same time.
Earnings for the year were $43,514, 2,391% more than the year before. It managed to earn only $1,747 in 2013, which is a true evidence of how it has progressed over the last 12 months or so. Sully Jacques, CEO, UA Multimedia stated that he was pleased to announce these excellent financial results. According to him, UA Multimedia would try to live up to investors expectations in the future as well.