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.


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.