September 15, 2022
Main Event Entertainment Group Limited (MEEG) for the nine months ended July 31, 2022 recorded a total of $1.09 billion in revenue compared to $592.73 million booked for the period ended July 31, 2021, a 85% increase year over year. Revenue for the quarter improved by 147% to close the quarter at $601.53 million relative to $243.35 million booked for the corresponding period in 2021. The Company noted, “The improved performance this quarter is underpinned by increased activity in our core business. The entertainment industry has seen a strong return to outdoor events and lifestyle experiences after a 2-year hiatus. The quarter is a historic one and reinforces our optimism for a sustainable shift following the Pandemic.”
Direct expenses for the nine months rose by 134% year over year to $582.92 million relative to the $248.76 million recorded in the prior corresponding period. Gross profit for the period grew by 49% to $511.15 million (2021: $343.98 million). Gross profit for the quarter increased 95% from $152.95 million in 2021 to $297.99 million in 2022. MEEG booked other income of $257,000 for the nine months, significantly higher than the prior year’s corresponding period of $49,000.
Total expenses rose by 19% to $383.97 million versus $322.32 million recorded for 2021. Of this, administrative and general expenses grew by 34% to $283.57 million (2021: $212.02 million), while depreciation expenses decreased 7% to $86.25 million (2021: $92.95 million). Selling and promotion expenses went up by 54% to $4.83 million relative to the $3.14 million booked last year. Total expenses for the quarter amounted to $155.71 million, 35% higher relative to last year’s comparable quarter of $115.48 million.
Consequently, operating profit for the period rose 487% to $127.44 million (2021: $21.71 million). Operating profit for the quarter amounted to $142.34 million versus a profit of $37.49 million booked July 2021.
Finance cost year over year, contracted by 25% to $9.56 million (2021: $12.68 million) at the end of July 2022.
MEEG recorded a profit before taxation of $117.88 million relative to the $9.02 million reported for last year’s corresponding period. Likewise, profit before tax for the quarter grew significantly to close at $139.32 million relative to a profit of $29.68 million booked twelve months earlier.
The company reported tax charge of $13.94 million (2021 tax credit: $147,000) during the period, resulting in net profit totaling $103.94 million, eleven times more than the $9.17 million reported a year prior. MEEG reported net profit of $123.78 million for the third quarter versus a profit of $28.68 million for the comparable period in 2021.
Earnings per Share (EPS) for the nine months amounted to $0.35 (2021: $0.03), while for the quarter the company booked an EPS of $0.41 relative to an EPS $0.10 in 2021. The trailing EPS amounted to $0.37. The number of shares used in the calculation was 300,005,000 units. Notably, MEEG stock price closed the trading period on September 14, 2022 at a price of $7.49 with a corresponding P/E ratio of 20.26 times.
Balance Sheet Highlights:
As at July 31, 2022, the company’s assets totalled $987.25 million (2021: $856.42 million), $130.83 million more than its value a year ago. This growth in total assets was largely driven by a 169% increase in ‘Receivables’ which amounted to $404.37 million (2021: $150.18 million). ‘Due from related companies’ also contributed to the upward movement with a 73% increase from $25.75 million booked as a July 31, 2021 to $44.63 million for the period under review.
Equity attributable to stockholders of the company amounted to $653.69 million (2021: $542.78 million). This translated to a book value per share of $2.18 relative to $1.81 for the corresponding period in 2021.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
