June 15, 2023
Main Event Entertainment Group Limited (MEEG) for the six months ended April 30, 2023:
Revenue increased 135% to $1.16 billion (2022: $492.54 million). For the quarter, revenue increased 83% to $531.89 million (2022: $290.82 million). Management noted that this was achieved through strong growth in MEEG’s core business activities.
Cost of sales increased 95% to $543.53 million (2022: $279.38 million). Consequently, gross profit increased 189% to $615.34 million (2022: $213.16 million).
Other operating income soared to $9.20 million from the $197,000 booked the prior year. For the quarter, other operating income jumped to $6.15 million (2022: $131,000).
Total operating expenses increased 76% to $401.15 million (2022: $228.25 million). The largest contributor to the increase was administrative and general expenses, which increased 106% to $333.30 million (2022: $162.10 million). Management noted that the year-over-year quarterly increase in expenses resulted from an increase in staff and other activity-related costs from increased executions in response to customer demands.
Operating profit grew to $223.39 million (2022: loss of $14.90 million). For the quarter, operating profit increased 296% to $91.39 million (2022: $23.10 million).
After finance costs declined 31% to $4.49 million (2022: $6.55 million) and taxation charge amounted to $26.52 million (2022: credit of $1.61 million), net profit amounted to $192.38 million (2022: loss of $19.84 million). For the quarter, net profit increased 258% to $74.43 million (2022: $20.81 million).
Earnings per share (EPS) amounted to $0.64 (2022: LPS of $0.07). For the quarter, EPS amounted to $0.25 (2022: $0.07). The trailing twelve-month EPS amounted to $1.21. The number of shares used in the calculations is 300,005,000. MEEG’s stock price closed the trading period on June 14, 2023 at $14.72 with a corresponding P/E ratio of 12.15x.
Balance Sheet Highlights:
Total assets as at April 30, 2023 increased 52% to $1.25 billion (2022: $827.08 million). This movement was largely due to a 152% increase in ‘Receivables’ to $434.31 million (2022: $172.19 million) followed by ‘Short term deposits’, which amounted to $226.15 million (2022: nil).
Shareholders’ equity as at April 30, 2023 increased 63% to $863.38 million (2022: $529.91 million) resulting in a book value per share of $2.88 (2022: $1.77).
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