MEEG reports 6% decline in year end net profit

Date: December 28, 2018 

Main Event Entertainment Group Limited (MEEG) for the year ended October 31, 2018 recorded a total of $1.40 billion in revenue compared to $1.18 billion booked for the period ended October 31, 2017. Revenue for the quarter rose 42% to close the quarter at $331.49 million relative to $233.65 million booked for the corresponding period in 2017.

Cost of sales for the year increased 24% year over year to $757.14 million relative to $610.26 million. Gross profit for the year thus improved 13% to $640.12 million (2017: $565.17 million). Gross profit for the quarter increased 9% from $117.68 million reported for October 2017 to $128.47 million.

MEEG booked other income of $2.59 million for the financial year, 16%  higher than the prior year’s $2.23 million.

Total expenses rose 19% to $527.72 million versus $443.77 million recorded for 2017. Of this:

  • Administrative and general expenses climbed 15% to $417.99 million (2017: $362.10 million).
  • Depreciation expense increased 23% to $90.37 million (2017: $73.44 million).
  • Selling and promotion expense jumped 136% to $19.37 million relative to $8.22 million. The main contributing elements to the increase according to MEEG were, “marketing and travel costs, staff-related costs, transportation expenses, and lease and property maintenance charges. The more significant increases in operating costs reflect heavy new product development and launch expenditure.”
  • Total expenses for the quarter amounted to $132.82 million, 21% higher relative to last year’s comparable quarter of $109.83 million.

Consequently, operating profit for the year declined 7% to $114.98 million (2017: $123.63 million).

Finance cost year over year, increased by approximately 28% to $19.80 million (2017: $15.45 million).

MEEG recorded profit before taxation of $95.18 million, a 12% drop when compared to last year’s corresponding period of $108.18 million.

The company reported $524,000 (2017: $7.14 million) for taxes during the year, resulting in net profit totaling $94.66 million compared to $101.05 million booked last year, a 6% decline year over year. MEEG reported net loss of $10.82 million for the fourth quarter versus a net loss of $107,000 for the comparable period in 2017.

Earnings per Share (EPS) for the year amounted to $0.32 (2016: $0.34), while for the quarter the company booked a loss per share of $0.0361 relative to a loss per share of $0.0004 in 2017. The number of shares used in the calculation was 300,005,000 units. MEEG closed the trading period on December 27, 2018, at a price of $5.90.

Balance Sheet Highlights:

As at October 31, 2018, the company’s assets totaled $941.55 million, $222.63 million more than its value a year ago. This increase in total assets was largely driven by an increase in ‘Receivables’ which rose $137.50 million to close at $316.99 million relative to $179.49 million in 2017. ‘Property, Plant and Equipment’ also contributed to the overall improvement in the asset base year over year with a 22% growth to $515.44 million (2017: $421.08 million).

Equity attributable to stockholders of the company amounted to $540.99 million (2017: $446.33 million). This translated to a book value per share of $1.80 relative to $1.49 for the corresponding period in 2017.

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2018-12-28T17:15:55+00:00