One Great Studio (1GS) lost $25 million last year, reversing a $36-million profit the year before, and its CEO partially blames artificial intelligence (AI) — but also sees it as the way out.
“If you’re not leveraging AI in this industry now, you’re behind,” CEO Dujane Browne said. “While some companies fear AI, we’ve taken the time to do our research on how we can use it wisely to enhance what we do.
“The company now has access to specialised systems that can strengthen our media monitoring arm, sharpen our data analysis, optimise workflow management, and create additional benefits for our clients across digital and communication campaigns.”
The growth of AI had weakened one of the company’s core business lines—search engine optimisation (SEO). The company’s own audited financials tell the story plainly: 1GS “experienced a material decline in its SEO business line due to technological developments in the digital marketing landscape, including evolving search algorithms, increased integration of AI-driven search results, and shifting user behaviour, which reduced demand for certain traditional SEO services”. In plain terms, Google started answering questions itself, and the agencies that built businesses around ranking in those results found themselves competing with their own client’s search engine. The wound was real enough to land in the auditor’s key findings for the year.
The Jamaica Stock Exchange-listed digital agency grew revenue 10 per cent to $376 million in the year ended December 2025, but the gains were swallowed by surging costs and a search landscape the company no longer fully recognised. The result was a net loss.
Then came Melissa
Just as the company was navigating that structural shift, Hurricane Melissa hit Jamaica last October. The immediate damage was limited. But the longer-term risk remains less clear. The financials flag that “potential lagging economic effects could delay client initiatives or lead to more cautious marketing expenditure”. The company says it has responded by executing “business development initiatives to mitigate potential softening in demand”, and pledged to “work closely with clients to support them as their industries are affected”.
The bill for growth
Beyond AI and the hurricane, the loss also reflects a company spending heavily to build something bigger. In February 2025 it purchased DRT Communications. That contributed to 1GS’ administrative expenses nearly doubling to $140 million from $87 million in 2024. The wage bill alone jumped from $33 million to $59.5 million.
That DRT deal — worth up to $115 million, including earn-out payments — added public relations and media monitoring to a portfolio that already includes High Voltage Digital and Snapsites, which 1GS brands a “house of agency brands”.
The client base grew modestly, from 130 to 135 active clients, and average annual spend per client rose to $2.8 million. But retainer-based revenue — the steady, recurring kind — fell from 82% to 72% of total income, a slide that will need to reverse for the growth story to hold.
Browne says the foundation is now in place. “Now that the heavy lifting is largely done, we’re focused on turning this stronger foundation into improved performance, margins and growth,” he said.
Cash ended the year at $27.5 million, down from $55.9 million, with no dividend declared. Loss per share was $0.01.
business@gleanerjm.com
