Major Cineplex (MAJOR) Q2 2019 earnings summary

Executive summary

• Q2 revenue was Baht 3,172,466 thousand versus Baht 3,003,679 thousand; net profit was Baht 515,234 thousand versus Baht 537,464 thousand.

• Q2 core profit rose 7% to Bt501m; EBITDA and EBIT each declined 5% YoY.

• H1 revenue rose to Baht 5,572,331 thousand from Baht 4,953,962 thousand, while net profit fell to Baht 726,916 thousand from Baht 823,974 thousand.

Financial highlights

• Q2 gross profit was Baht 1,165,028 thousand versus Baht 1,092,714 thousand; other income fell to Baht 21,185 thousand from Baht 102,691 thousand.

• Q2 operating profit rose 8% to Bt554m; EBITDA was Bt921m and EBIT Bt650m, both down 5% YoY.

• H1 gross profit increased to Baht 1,955,838 thousand from Baht 1,712,778 thousand; operating expenses and lower other income weighed on profit.

• H1 consolidated operating cash flow was Baht 1,553,477 thousand, compared with Baht 1,589,162 thousand in H1 2018.

Segment performance

• Q2 admissions revenue rose 3% to Bt1,815m, concession revenue 4% to Bt647m, advertising revenue 14% to Bt409m and movie content revenue 72% to Bt93m.

• Q2 bowling revenue declined 4% to Bt98m; retail revenue increased 3% to Bt110m.

• Q2 guest count was 11.22m versus 11.45m YoY; ATP increased to Bt147 from Bt142, while concession margin was 65% versus 68%.

• H1 cinema net revenue was Baht 4,351m and segment result Baht 538m; bowling and karaoke generated Baht 626m revenue and Baht 414m result.

• H1 advertising revenue was Baht 219m, movie content revenue Baht 160m, and rental and services revenue Baht 216m; their segment results were Baht 6m, a Baht 53m loss and a Baht 6m loss, respectively.