MEEG booked 8% increase in six months net profits

June 13,2018 

Main Event Entertainment Group Limited (MEEG) for the six months ended April 30, 2018 recorded a total of $702.05 million in revenue, an 8% increase when compared to $652.15 million booked for the comparable period in 2017. Revenues of $340.64 million were recorded for the quarter, representing a 7% increase relative to the $319.33 million booked for the comparable period in 2017.

Cost of sales for the period increased marginally by 2% year over year to $354.36 million relative to $347.73 million recorded for the comparable period in 2017. As such, gross profit for the six months improved by 14% to $347.69 million (2017: $304.43 million). Gross profit for the quarter improved 8% to total $187.36 million relative to $172.69 million recorded in 2017.

MEEG booked other income of $2.01 million for the period, compared to the $437,000 documented for the prior year’s corresponding period.

Total expenses rose 17% to $260.28 million versus $222.31 million recorded for the same period ended April 2017. Of this, administrative and general expenses climbed 12% to $199.98 million (2017: $178.00 million), while depreciation expense increased 21% to $44.88 million (2017: $37.18 million). Selling and promotion expense recorded a gross increase of 116% to $15.42 million relative to $7.13 million. The main contributing elements to the increase according to MEEG were, “marketing and travel costs, staff related costs, transportation expenses and lease and property maintenance charges. The more significant increases in operating costs reflect heavy new product development and launch expenditure.”

Consequently, operating profit for the period amounted to $89.42 million (2017: $82.55 million), an increase of 8% year over year.

Finance cost increased 10% for the period to close at $8.49 million up from $7.69 million booked last year. Finance cost for the quarter increased 39% to $5.08 million (2017: $3.64 million). Management noted this was, “due to initial charges on new facilities.”

Consequently, MEEG’s net profit for the period improved 8% or $6.07 million to $80.93 million (2017: $74.86 million). Net profit for the quarter declined 7% to $47.96 million relative to $51.33 million recorded for the comparable period in 2017.

Earnings per share (EPS) for the period totaled $0.27 (2017: $0.25) while earnings per share for the quarter amounted to $0.16 (2017: $0.17) .The trailing EPS amounted to $0.36. The number of shares used in the calculation was 300,005,000 units. Notably, MEEG’s stock price closed the trading period on June 13, 2018 at a price of $8.00.

Balance Sheet Highlights:

As at April 30, 2018, the company’s assets totaled $859.03 million, $90.81 million more than its value a year ago of $768.22 million. This increase in total assets was largely driven by increases in ‘Property, Plant and Equipment’ which rose 15% or $63.30 million year over year to $493.09 million (2017: $429.79 million). ‘Receivables’ also increased 26% or $62.62 million to $306.49 million (2017: 243.86 million).

Equity attributable to stockholders of the company amounted to $527.26 million (2017: $420.11 million). This translated to a book value per share of $1.76 relative to $1.40 in 2017.

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2018-06-13T21:22:01-05:00