MEEG reports 69% increase in nine months net profit

Main Event Entertainment Group Limited (MEEG) for the nine months ended July 31, 2017 recorded a total of $941.78 million in revenue compared to $855.21 million booked for the period ended July 31, 2016. Revenue for the quarter rose 15% to close the quarter at $289.63 million relative to $252.22 million booked for the corresponding period in 2016.

Cost of sales for the nine months decreased 6% year over year to $494.29 million relative to $528.09 million. Gross profit for the period improved by 37% to $447.49 million (2016: $327.12 million). Gross profit for the quarter increase 605 from $89.33 million reported for July 2016 to $143.06 million. MEEG noted, “our focus on the expansion of the general and rental equipment base and fleet has equipped us to offer increasing service elements to our customers with stronger controls over our operations and operating costs.”

MEEG booked other income of $573,000 for the nine months, 48% higher than the prior year’s $384,000.

Total expenses rose 30% to $333.94 million versus $256.79 million recorded for 2016. Of this, administrative and general expenses climbed 30% to $270.20 million (2016: $207.54 million), while depreciation expense increased 31% to $53.53 million (2016: $40.82 million). Selling and promotion expense climbed by 21% to $10.21 million relative to $8.42 million booked last year. Management attributed the increase in total expenses to, “transportation costs, marketing expenses, staff costs and depreciation charges.” Total expenses for the quarter amounted to $111.63 million, 22% higher relative to last year’s comparable quarter of $91.30 million.

Consequently, operating profit for the period rose 61% to $114.12 million (2016: $70.71 million).

Finance cost year over year, increased by approximately $2 million or 18% to $12.97 million (2016: $10.97 million). According to MEEG this was, “due to higher interest and finance lease charges compared to the same period in 2016.”

MEEG recorded profit before taxation of $101.15 million, a growth of 69% when compared to last year’s corresponding period of $59.74 million.

The company reported nil for taxes during the period, resulting in net profit totalling $101.15 million compared to $59.74 million booked last year, a 69% increase year over year. MEEG reported net profit of $26.29 million for the third quarter versus a net loss of $4.66 million for the comparable period in 2016.

Earnings per Share (EPS) for the nine months amounted to $0.34 (2016: $0.20), while for the quarter the company booked an EPS of $0.09 relative to a loss per share of $0.02. The trailing EPS amounted to $0.29. The number of shares used in the calculation was 300,005,000 units.


Balance Sheet Highlights:

As at July 31, 2017, the company’s assets totalled $703.05 million, $161.14 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 23% or $78.26  million year over year to $419.89 million (2016: $341.63 million). ‘Cash and Bank Balances’ also contributed to the upward movement with a 727% surged from $9.67 million booked as a July 31, 2016 to $79.92 million.

Equity attributable to stockholders of the company amounted to $446.40 million (2016: $245.48 million). This translated to a book value per share of $1.49 relative to $0.82 for the corresponding period in 2016.


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