January 16, 2024
Main Event Entertainment Group Limited (MEEG)
Audited financials for the twelve months ended October 31, 2023:
Main Event Entertainment Group Limited (MEEG) for the twelve months ended October 31, 2023, reported a 24% increase in Revenues totaling $1.92 billion compared to $1.55 billion in the corresponding period last year. Revenues for the fourth quarter had a 26% decrease to close at $334.95 million compared to $454.94 million for the comparable quarter of 2022.
Cost of Sales amounted to $896.47 million (2022: $794.18 million), this represents an increase of 13% year over year. Consequently, gross profit increased by 36% to $1.03 billion compared to $754.82 million for the twelve months ended October 31, 2022. The company booked gross profit of $186.31 million for the fourth quarter versus $243.68 million reported for the similar quarter of 2022.
Administrative and general increase by 40% to close at $626.96 million (2022: $446.81 million), while amortization increased by 189% from $12.43 million in 2022 to $35.93 million in the period under review. As a result, total expenses for the twelve months ended October 31, 2023, amounted to $795.37 million, a 37% increase relative to $578.75 million reported in 2022.
Operating Profit for the twelve months ended October 31, 2023, amounted to $249.21 million, a 40% increase relative to $178.61 million reported in 2022. Operating loss for the fourth quarter amounted to $2.78 million (2022: Operating profit of $51.17 million).
Finance costs totalled $16.02 million a 41% increase from the corresponding period last year. (2022: $11.39 million).
Profit Before Taxation for the twelve months ended October 31, 2023, amounted to $233.19 million, a 39% increase relative to $167.23 million reported in 2022. Loss Before Taxation for the fourth quarter amounted to $11.40 million (2022: Profit of $49.35 million).
Taxation for the twelve months ended October 31, 2023, increased 61% to reach $25.78 million (2022: $15.98 million).
Net Profit for the twelve months amounted to $207.41 million, a 37% increase from the $151.25 million reported in 2022. For the fourth quarter, net loss was $8.28 million versus net profit of $47.31 million booked in 2022. MEEG highlighted, “ Underpinning these results was the company’s ability to respond to shifts in market conditions within the entertainment sector through the introduction of new products and engaging new clients. The pursuit of new opportunities along with the company’s focus on operational efficiency yielded success in 2023.”
Consequently, Earnings Per Share for the twelve months amounted to $0.69 (2022: EPS: $0.50), while Loss Per Share for the quarter totaled $0.03 (2022: EPS: $0.16).
Notably, MEEG’s stock price closed the trading period on January 15, 2024, at a price of $13.30 with a corresponding P/E ratio of 19.24x.
Balance Sheet Highlights
The company’s assets totalled $1.16 billion (2022: $1.09 billion). The movement in total assets was influenced by ‘Deposit- short term’ growing 54% to close at $232.89 million as well as a 77% uptick in ‘Cash and bank balances’ to $225.91 million, however, ‘Receivables’ declined 33% to offset the movement, closing the period at $237.56 million.
Shareholder’s equity was $848.41 million (2022: $671.00 million), representing a book value per share of $2.83 (2022: $2.24).
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