MEEG reports 6% increase in nine months net profit

September 14, 2021

Main Event Entertainment Group Limited (MEEG) for the nine months ended July 31, 2021 recorded a total of $592.73 million in revenue compared to $944.59 million booked for the period ended July 31, 2020, a 37% decrease year over year. Revenue for the quarter improved by 307% to close the quarter at $243.35 million relative to $59.78 million booked for the corresponding period in 2020. The Company noted, “Revenues from digital signage services were a substantive driver of the quarter’s performance. A one-off transaction completed in July 2021, contributed significantly to the results.”

Direct expenses for the nine months decreased 52% year over year to $248.76 million relative to $521.30 million recorded in the prior corresponding period. Gross profit for the period thus reduced by 19% to $343.98 million (2020: $423.29 million). Gross profit for the quarter increased 277% from $40.57 million in 2020 to $152.95 million in 2021. MEEG booked other income of $49,000 for the nine months, 91% lower than the prior year’s corresponding period of $530,000.

Total expenses declined by 20% to $322.32 million versus $403.25 million recorded for 2020. Of this, administrative and general expenses fell 29% to $212.02 million (2020: $299.99 million), while depreciation expense decreased 2% to $92.95 million (2020: $94.78 million). Selling and promotion expense declined by 63% to $3.14 million relative to $8.47 million booked last year. Total expenses for the quarter amounted to $115.48 million, 38% higher relative to last year’s comparable quarter of $83.50 million.

Consequently, operating profit for the period rose 6% to $21.71 million (2020: $20.57 million). Operating profit for the quarter amounted to $37.49 million versus a loss of $42.78 million booked July 2020.

Finance cost year over year, increased by approximately 2% to $12.68 million (2020: $12.46 million) at the end of July 2021.

MEEG recorded profit before taxation of $9.02 million, a rise of 11% when compared to last year’s corresponding period of $8.11 million. However, profit before tax for the quarter closed at $29.68 million relative to a loss of $47 million booked twelve months earlier.

The company reported tax credit of $147,000 (2020 tax credit: $562,000) during the period, resulting in net profit totalling $9.17 million, a 6% increase year over year (2020: $8.67 million). MEEG reported net profit of $28.68 million for the third quarter versus a loss of $45.54 million for the comparable period in 2020.

Earnings per Share (EPS) for the nine months amounted to $0.031 (2020: $0.029), while for the quarter the company booked an EPS of $0.10 relative to an LPS $0.15 in 2020. The trailing LPS amounted to $0.06. The number of shares used in the calculation was 300,005,000 units. Notably, MEEG stock price closed the trading period on September 13, 2021 at a price of $4.18.

Balance Sheet Highlights:

As at July 31, 2021, the company’s assets totalled $856.42 million (2020: $848.69 million), $7.73 million more than its value a year ago. This decrease in total assets was largely driven by a 100% increase in ‘Receivables’ which amounted to $150.18 million (2020: $75.11 million). ‘Due from related companies’ also contributed to the upward movement with a 74% increase from $14.80 million booked as a July 31, 2020 to $25.75 million for the period under review.

Equity attributable to stockholders of the company amounted to $542.78 million (2020: $560.51 million). This translated to a book value per share of $1.81 relative to $1.87 for the corresponding period in 2020.


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