MEEG reports first quarter net loss of $40.64 million

March 22, 2022

Main Event Entertainment Group Limited (MEEG) for the quarter ended January 31, 2021, recorded $201.72 million in revenue compared to $175.84 billion booked for the period ended January 31, 2021, a 15% increase year over year. Gross revenue however fell by 29% to $79.00 million from $110.73 million in 2021. This was primarily due to an 88% increase in cost of sales from $65.11 million to $122.72 million. Management noted that, “The revenue earned in the latter part of the quarter came primarily from low contact, facilitation type executions. Such projects were a necessary way to maintain contact with and relevance to our customers throughout this period.”

Total expenses for the quarter ended rose 15% year over year to $117.06 million versus to $101.37 million recorded in the period prior. The main drivers in total expenses were, administrative & General Expenses, which grew by 31% to $83.78 million (2021: $63.72 million), while Selling & Promotion expenses grew by 69% to total $1.40 million (2021: $829,000). MEEG noted, “The re-imposition of restrictive measures brought immediate and sharp declines in demand for services, and we faced multiple requests to scale back or defer holiday season projects. In some instances, planning and preparatory work had already begun, and certain costs already incurred. Such sunken costs have contributed to elevated operating costs this quarter.”

Main Event Entertainment Group posted an Operating Loss of $38.00 million in the quarter ended January 31, 2022 relative to an Operating Profit $9.38 million during the corresponding period last year.

Finance costs year over year, increased by approximately 43% to $3.40 million for the quarter ended January 2022 (2021: $2.38 million)

MEEG reported a Net Loss of $40.64 million compared to a profit of $8.07 million in 2021. Management noted “The results reflect the persisting volatilities faced by our business in this ongoing pandemic.” Tax credit amounted to$758,000 in the first quarter of 2022 compared to a credit of $1.07 million in 2021. This translated into a Loss per Share (LPS) of $0.14 compared to an Earning per Share (EPS) $0.03 in the corresponding quarter last year. The trailing twelve-month LPS amounted to $0.11. The number of shares used in the calculation was 300,005,000 units. Notably, MEEG stock price closed the trading period on March 21, 2022 at a price of $9.35.

Balance Sheet Highlights: 

As at January 31, 2022, total company’s assets stood at $824.76 million (2021: $860.50 million), $35.32 million less than its value a year ago. The decline in total assets was due to a 93% and 21% fall in ‘Right of use assets’ and ‘Property, plant and equipment’ which closed the period at $2.13 million (2021: $49.63 million) and $431.09 million (2021: $546.77 million) respectively. The downward movement in the asset base was tempered by a 75% growth in the value of ‘Receivables’ from $77.36 million to $135.74 million at the end of January 2022.

Equity attributable to stockholders of the company amounted to $509.11 million (2021: $541.68 million). This translated to a book value per share of $1.70 relative to $1.81 as at January 31, 2021.


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