March 12, 2024
Main Event Entertainment Group Limited (MEEG) for the first quarter ended January 31, 2024, reported a 9% decrease in revenues totalling $567.75 million compared to $626.99 million in the corresponding three months last year. MEEG noted, “This was mainly due to a one-off event for one of our major clients which is not likely to reoccur in subsequent periods”.
Cost of Sales amounted to $251.93 million (2022: $314.38 million), this represents a decrease of 20% year over year. Consequently, gross profit increased by 1% to $315.82 million compared to $312.61 million for the first quarter ended January 31, 2023.
Administrative and general expenses increased by 15% to close at $165.23 million (2022: $144.15 million), while Depreciation costs decreased by 9% from $30.50 million in 2022 to $27.61 million for the three months. As a result, Total Expenses for the first quarter amounted to $206.35 million, a 12% increase relative to $183.65 million reported in 2022.
Operating Profit for the three months amounted to $115.29 million, a 13% decrease relative to $132.00 million reported in 2022.
Finance costs totalled $3.06 million, a 21% increase from the corresponding period last year. (2022: $2.52 million).
Profit Before Taxation for the first quarter ended January 31, 2024, amounted to $112.22 million, a 13% decrease relative to $129.49 million reported in 2022.
Tax charge for the three months had a 4% increase to reach $11.97 million (2022: $11.54 million). As such, Net Profit for the three months amounted to $100.25 million, a 15% decrease from the $117.95 million reported in 2022.
Consequently, Earnings Per Share for the three months amounted to $0.33 (2022: EPS: $0.39). The twelve month trailing EPS was $0.63, and the number of shares used in these calculations was 300,005,000.
Notably, MEEG’s stock price closed the trading period on March 11, 2024, at a price of $14.28 with a corresponding P/E ratio of 22.58x.
Balance Sheet Highlights
The company’s assets totalled $1.23 billion (2022: $1.17 billion). MEEG highlighted, “ Short-term deposits increased by $83.35 million or 54%, while cash balance fell by $78.27 million or 29% owing to the prior financial year investment of over $135 million via internal cash resources”.
Shareholder’s equity was $912.66 million (2022: $788.95 million), representing a book value per share of $3.04 (2022: $2.63).
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