MEEG reports 4% increase in nine months net profit

Date: September 12, 2018 

Main Event Entertainment Group Limited (MEEG) for the nine months ended July 31, 2018 recorded a total of $1.07 billion in revenue compared to $941.78 million booked for the period ended July 31, 2017, a 13% increase year over year. Revenue for the quarter rose 26% to close the quarter at $363.71 million relative to $289.63 million booked for the corresponding period in 2017.

Cost of sales for the nine months increased 12% year over year to $554.12 million relative to $494.29 million. Gross profit for the period thus improved by 14% to $511.64 million (2017: $447.49 million). Gross profit for the quarter increase 15% from $143.06 million reported for July 2017 to $163.95 million. MEEG booked other income of $2.38 million for the nine months, $1.81 million higher than the prior year’s corresponding period of $573,000.

Total expenses rose 18% to $394.91 million versus $333.94 million recorded for 2017. Of this, administrative and general expenses climbed 15% to $310.93 million (2017: $270.20 million), while depreciation expense increased 29% to $69.30 million (2017: $53.53 million). Selling and promotion expense climbed by 44% to $14.68 million relative to $10.21 million booked last year. Total expenses for the quarter amounted to $134.62 million, 21% higher relative to last year’s comparable quarter of $111.63 million.

Consequently, operating profit for the period rose 4% to $119.12 million (2017: $114.12 million).

Finance cost year over year, increased by approximately 5% to $13.64 million (2017: $12.97 million).

MEEG recorded profit before taxation of $105.48 million, a growth of 4% when compared to last year’s corresponding period of $101.15 million.

The company reported nil for taxes during the period, resulting in net profit totalling $105.48 million compared to $101.15 million booked last year, a 4% increase year over year. MEEG reported net profit of $24.55 million for the third quarter versus $26.29 million for the comparable period in 2017, a 7% decline.

Earnings per Share (EPS) for the nine months amounted to $0.35 (2017: $0.34), while for the quarter the company booked an EPS of $0.08 relative to $0.09 in 2017. The trailing EPS amounted to $0.35. The number of shares used in the calculation was 300,005,000 units. Notably, MEEG stock price closed the trading period on September 11, 2018 at a price of $6.19.

Balance Sheet Highlights:

As at July 31, 2018, the company’s assets totalled $866.47 (2017 $703.05 million), $163.42 million more than its value a year ago. This increase in total assets was largely driven by an increase in ‘Property, Plant and Equipment’ which rose 22% or $90.73 million year over year to $510.62 million (2017: $419.89 million). ‘Receivables’ also contributed to the upward movement with a 68% surged from $180.95 million booked as a July 31, 2017 to $303.91 million.

Equity attributable to stockholders of the company amounted to $551.81 million (2017: $446.40 million). This translated to a book value per share of $1.84 relative to $1.49 for the corresponding period in 2017.

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2018-09-13T13:37:04+00:00