September 15, 2023
Main Event Entertainment Group Limited (MEEG)
Unaudited financials for the nine months ended July 31, 2023:
Main Event Entertainment Group Limited (MEEG) for the nine months ended July 31, 2023 reported a 45% increase in Revenues totaling $1.59 billion compared to $1.09 billion in the corresponding period last year. Revenues for the third quarter had a 29% decrease to close at $428.06 million compared to $601.53 million for the comparable quarter of 2022.
Management noted, “The marked decline in income and revenues for the third quarter is a direct consequence of timing shifts in the event pipeline. These shifts have slowed the revenue growth in the current quarter but have also been affording us the time to align our capabilities and services for strategic moves. Despite the decline in our year-over-year third quarter performance, the company continues to exceed the corresponding period’s year-to-date performance”.
Cost of Sales amounted to $747.83 million (2022: $582.92 million), this represents an increase of 28% year over year. Consequently, gross profit increased by 64% to $839.10 million compared to $511.15 million for the nine months ended July 31, 2022. The company booked gross profit of $223.76 million for the third quarter versus $297.99 million reported for the similar quarter of 2022.
Total Income amounted to $852.77 million for the nine months ended July 31, 2023 relative to $511.40 million booked in 2022.
Administrative and general expenses increased by 75% to close at $495.36 million (2022: $283.57 million).
Selling and promotion expenses amounted to $17.44 million (2022: $4.83 million).
Depreciation decreased by 7% from $86.25 million in 2022 to $80.52 million in the period under review.
Amortization totalled $7.46 million (2022: $9.32 million).
As a result, total expenses for the nine months ended July 31, 2023 amounted to $600.78 million, a 56% increase relative to $383.97 million reported in 2022.
Operating Profit for the nine months ended July 31, 2023, amounted to $251.99 million, a 98% increase relative to $127.44 million reported in 2022. Operating Profit for the third quarter amounted to $28.60 million (2022: $142.34 million).
Finance costs totalled $7.40 million a 23% decrease from the corresponding period last year. (2022: $9.56 million).
Profit Before Taxation for the nine months ended July 31, 2023, amounted to $244.59 million, a 107% increase relative to $117.88 million reported in 2022. Profit Before Taxation for the third quarter amounted to $25.69 million (2022: $139.32 million).
Tax charge for the nine months ended July 31, 2023 had a 107% increase to reach $28.90 million (2022: $13.94 million). As for the quarter, tax charge amounted to $2.38 million (2022: $15.54 million).
Consequently, Net Profit for the nine months amounted to $215.69 million, a 108% increase from the $103.94 million reported in 2022. For the third quarter, Net Profit was $23.31 million (2022: $123.78 million).
Earnings Per Share for the nine months amounted to $0.72 (2022: EPS: $0.35), while Earnings Per Share for the quarter totaled $0.08 (2022: EPS: $0.41). The twelve month trailing EPS was $0.88 and the number of shares used in these calculations was 300,005,000.
Notably, MEEG’s stock price closed the trading period on September 14, 2023 at a price of $14.52 with a corresponding P/E ratio of 16.56x.
Balance Sheet Highlights
The company’s assets totalled $1.25 billion (2022: $987.25 million). The overall movement was due to increases in ‘Deposits- short term’ and ‘Cash and bank balances’ which ended the period at $229.33 million (2022: nil) and $189.99 million (2022: $111.13 million) respectively; while ‘Receivables’ declined by $62.80 million to close at $341.57 million.
Shareholder’s equity was $856.68 million (2022: $653.69 million), representing a book value per share of $2.86 (2022: $2.18).
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