Date: June 12, 2020
Main Events Entertainment Group reported revenue of $884.81 million, 1% lower than the $895.83 million booked in 2019. Revenue for the quarter amounted to $286.66 million compared to $438.14 million recorded for the six months ended April 30, 2019. Management noted that, “we anticipate this lull in revenue activity to persist throughout the third quarter. We are cautiously optimistic that some partial recovery can occur in the final quarter of the year as a number of rescheduled events are now slated for a staging between October and December 2020.”
In addition, MEEG noted that, “cost management measures were introduced in March 2020 to help mitigate for declining revenues. Measures have included cutbacks in most key operations costs during the final six (6) weeks of the quarter. We intend to continue to exercise cost discipline in the coming months. We continue to negotiate with key partners to manage and minimize our fixed costs.”
Cost of Sales increased 2% to close at $502.09 million (2019: $490.06 million). This resulted in gross profit decreasing by 6%, amounting to $382.72 million for the period relative to $405.77 million in 2019. Gross profit for the quarter closed at $110.03 million relative to $208.66 million for the comparable quarter of 2019.
Other operating income for the period, fell by 94% to close at $383,000 (2019: $6.64 million). For the quarter, other operating income closed at $77,000 (2019: $6.49 million).
Total expenses amounted to $319.75 million (2019: $309.67 million) for the period, a 3% increase when compared to the prior year. Of that, administrative and other expenses rose by 1%, moving from $246.34 million in 2019 to $248.05 million in 2020. Selling and promotions fell 4% to $8.19 million from $8.55 million reported in 2019. Depreciation rose 16% to total $63.51 million for the period (2019: $54.78 million).
As such, operating profit decreased by 38% from $102.74 million in 2019 to $63.35 million for the period under review. MEEG’s recorded operating loss for the quarter closing at $12.37 million versus operating profit of $67.34 million booked in the previous comparable quarter. Finance costs decreased by 12% to close the period at $8.24 million (2019: $9.38 million).
Profit before taxation decreased by 41% to close the period at $55.11 million (2019: $93.36 million). MEEG incurred taxes of $904,000 for the period, thus net profit amounted to $54.21 million (2019: $93.36 million). Net loss for the quarter amounted to $15.80 million compared to net profit $61.76 million booked in the same quarter in 2019.
Consequently, earnings per share (EPS) for the period amounted to $0.18 compared with $0.31 reported for the corresponding period of last year. LPS for the quarter amounted to $0.05 (2019: EPS $0.21). The trailing twelve months earnings per share amounted to $0.19. The numbers of shares used in the calculations are 300,005,000 units. Notably, MEEG stock price close the trading period on June 11, 2020 at $4.40.
MEEG highlighted that, “we are currently reassessing the appropriateness of our short to medium term financial targeted and will review and revise our plans and strategies accordingly. Our aim is to emerge from this as a more fortified business, better equipped to navigate the new normal ahead.”
Balance Sheet at a glance:-
Assets totaled $940.36 million as at April, 2020 relative to $1.05 billion a year prior. The decrease in total assets was largely due to a decrease in ‘Receivables’ to total $109.23 million (2019: $354.24 million). The decline was partially tempered by an increase in ‘Property, Plant & Equipment’ which closed at $641.10 million (2019: $563.61 million).
Equity attributable to stockholders of parent amounted to $606.05 million (2019: $616.35 million) with book value per share amounting to $2.02 (2019: $2.05).
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