September 15, 2022
Main Event Entertainment Group Limited (MEEG) for the nine months ended July 31, 2022 recorded a total of $1.09 billion in revenue compared to $592.73 million booked for the period ended July 31, 2021, a 85% increase year over year. Revenue for the quarter improved by 147% to close the quarter at $601.53 million relative to $243.35 million booked for the corresponding period in 2021. The Company noted, “The improved performance this quarter is underpinned by increased activity in our core business. The entertainment industry has seen a strong return to outdoor events and lifestyle experiences after a 2-year hiatus. The quarter is a historic one and reinforces our optimism for a sustainable shift following the Pandemic.”
Direct expenses for the nine months rose by 134% year over year to $582.92 million relative to the $248.76 million recorded in the prior corresponding period. Gross profit for the period grew by 49% to $511.15 million (2021: $343.98 million). Gross profit for the quarter increased 95% from $152.95 million in 2021 to $297.99 million in 2022. MEEG booked other income of $257,000 for the nine months, significantly higher than the prior year’s corresponding period of $49,000.
Total expenses rose by 19% to $383.97 million versus $322.32 million recorded for 2021. Of this, administrative and general expenses grew by 34% to $283.57 million (2021: $212.02 million), while depreciation expenses decreased 7% to $86.25 million (2021: $92.95 million). Selling and promotion expenses went up by 54% to $4.83 million relative to the $3.14 million booked last year. Total expenses for the quarter amounted to $155.71 million, 35% higher relative to last year’s comparable quarter of $115.48 million.
Consequently, operating profit for the period rose 487% to $127.44 million (2021: $21.71 million). Operating profit for the quarter amounted to $142.34 million versus a profit of $37.49 million booked July 2021.
Finance cost year over year, contracted by 25% to $9.56 million (2021: $12.68 million) at the end of July 2022.
MEEG recorded a profit before taxation of $117.88 million relative to the $9.02 million reported for last year’s corresponding period. Likewise, profit before tax for the quarter grew significantly to close at $139.32 million relative to a profit of $29.68 million booked twelve months earlier.
The company reported tax charge of $13.94 million (2021 tax credit: $147,000) during the period, resulting in net profit totaling $103.94 million, eleven times more than the $9.17 million reported a year prior. MEEG reported net profit of $123.78 million for the third quarter versus a profit of $28.68 million for the comparable period in 2021.
Earnings per Share (EPS) for the nine months amounted to $0.35 (2021: $0.03), while for the quarter the company booked an EPS of $0.41 relative to an EPS $0.10 in 2021. The trailing EPS amounted to $0.37. The number of shares used in the calculation was 300,005,000 units. Notably, MEEG stock price closed the trading period on September 14, 2022 at a price of $7.49 with a corresponding P/E ratio of 20.26 times.
Balance Sheet Highlights:
As at July 31, 2022, the company’s assets totalled $987.25 million (2021: $856.42 million), $130.83 million more than its value a year ago. This growth in total assets was largely driven by a 169% increase in ‘Receivables’ which amounted to $404.37 million (2021: $150.18 million). ‘Due from related companies’ also contributed to the upward movement with a 73% increase from $25.75 million booked as a July 31, 2021 to $44.63 million for the period under review.
Equity attributable to stockholders of the company amounted to $653.69 million (2021: $542.78 million). This translated to a book value per share of $2.18 relative to $1.81 for the corresponding period in 2021.
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