The LAB’s profit falls by half, but gains expected in 2026
Published:Sunday | January 4, 2026 | 12:05 AM
Limners and Bards Limited (The LAB) reported that its annual profit to October fell by half to $40 million, but management indicated that this reflected continued investment in digital and owned content.
The company expects these investments to begin paying off in 2026.
“While these investments temporarily compressed earnings, they position the group to benefit from improved scale, enhanced capabilities and operating leverage as initiatives mature,” stated the company in financials signed by CEO Kimala Bennett, who added that investments were made in facilities, content, and talent.
The LAB’s move comes as Jamaica’s advertising market faces cautious client spending and cost pressures. By broadening into broadcasting and digital platforms, the company aims to reduce reliance on traditional advertising and build durability across cycles.
Over the past two years, the company has expanded beyond “traditional advertising into owned content, digital platforms and scalable intellectual property”. This has been done to “reduce dependence on any single revenue stream” and to build a business with greater resilience across economic cycles, it added.
“At the same time, client spend is increasingly distributed across formats and platforms, with continued growth in digital, performance-led content and owned media. The Group has adjusted its service mix accordingly, while preserving the capabilities that underpin its core business,” it said.
Earnings per share slipped to $0.04 from $0.09. Revenue contracted 4.0 per cent to $920.1 million, reflecting project seasonality and temporary market disruptions. Gross profit held relatively steady at $349.6 million, with margins improving by one percentage point to 38 per cent.
As part of its plan to produce five films over the medium term, branded the ‘Five in ’25’ programme, the company has already delivered three films, with a fourth entering production in January. Discussions with distributors and streaming platforms are well advanced, Bennett added.
Total assets edged up to $1.02 billion, while shareholders’ equity rose 6.3 per cent to $678.7 million. Cash holdings fell to $327.9 million, reflecting investment in proprietary content, but receivables improved by $16.4 million.