June 13, 2024

Main Event Entertainment Group Limited (MEEG) for the six months ended April 30, 2024, reported a 15% decrease in Revenues totalling $986.33 million compared to $1.16 billion in the corresponding period last year. Revenues for the second quarter had a 21% decrease to close at $418.58 million compared to $531.89 million for the comparable quarter of 2023.
MEEG highlighted, “The decline is the result of a lower performance in traditional revenue sources, caused by the changing landscape within the entertainment sector, a decline in marketing spend by some of our major clients and a lower-than normal return from Carnival in Jamaica, 2024. The company’s revenue was also impacted by biennial events which contributed significantly to our revenue during the second quarter of the corresponding period.”
Cost of Sales amounted to $472.44 million (2023: $543.53 million), this represents a decrease of 13% year over year. Consequently, gross profit decreased by 16% to $513.89 million compared to $615.34 million for the six months ended April 30, 2023. The company booked gross profit of $198.06 million for the second quarter versus $302.73 million reported for the similar quarter of 2023.
Administrative and general expenses decreased by 10% to close at $298.65 million (2023: $333.30 million), while Depreciation expenses increased by 19% from $51.31 million in 2023 to $61.12 million in the period under review. As a result, total expenses for the six months ended April 30, 2024 amounted to $385.24 million, a 4% decrease relative to $401.15 million reported in 2023.
Operating Profit for the six months ended April 30, 2024, amounted to $140.29 million, a 37% decrease relative to $223.39 million reported in 2023. Operating Profit for the second quarter amounted to $25.00 million (2023: $91.39 million).
Finance costs totalled $5.97 million a 33% increase from the corresponding period last year. (2023: $4.49 million).
Profit Before Taxation for the six months ended April 30, 2024, amounted to $134.32 million, a 39% decrease relative to $218.90 million reported in 2023. Profit Before Taxation for the second quarter amounted to $22.10 million (2023: $89.41 million).
Taxation charge for the six months ended April 30, 2024, had a 47% decrease to reach $14.05 million (2023: $26.52 million). As such, Net Profit for the six months amounted to $120.27 million, a 37% decrease from the $192.38 million reported in 2023. For the second quarter, Net Profit was $20.02 million (2023: $74.43 million).
Consequently, Earnings Per Share for the six months amounted to $0.40 (2023: EPS: $0.64), while Earnings Per Share for the quarter totalled $0.07 (2023: EPS: $0.25). The twelve month trailing EPS was $0.45 and the number of shares used in these calculations was 300,005,000.
Notably, MEEG’s stock price closed the trading period on June 12, 2024, at a price of $12.50 with a corresponding P/E ratio of 27.72x.

Balance Sheet Highlights

The company’s assets totalled $1.22 billion (2023: $1.25 billion). This represents a decline of $33.34 million. According to MEEG, “Receivables decreased by $124.754 million or 29%, partly because of our reclassification of deposits on fixed assets now capitalised. Loans decreased by $23.869 million or 30%, while Payables decreased by $35.533 million or 15% because of lower operating activities when compared to the six months ended April 30, 2023.”
Shareholder’s equity was $932.68 million (2023: $863.38 million), representing a book value per share of $3.11 (2023: $2.88).

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