Major Cineplex (MAJOR) Q3 2019 earnings summary

Executive summary

• 3Q19 revenue reached Bt2,457.324m versus Bt2,047.529m; consolidated profit for the period was Bt200.158m versus Bt210.207m.

• 3Q19 core profit rose 67% to Bt195m, while net profit attributable to owners fell 5% to Bt195m.

• 9M19 revenue was Bt8,029.655m versus Bt7,001.491m; consolidated profit fell to Bt927.074m from Bt1,034.182m.

• 9M19 core profit increased 19% to Bt873m, while net profit attributable to owners declined 12% to Bt906m.

Financial highlights

• Q3 gross profit was Bt777.962m versus Bt630.118m; gross margin was 32% versus 31% YoY.

• Q3 operating profit rose 89% to Bt159m; EBIT was broadly flat at Bt273m.

• 9M gross profit was Bt2,733.800m versus Bt2,342.895m; operating profit rose 28% to Bt895m.

• 9M EBITDA fell 5% to Bt2,041m and EBIT fell 6% to Bt1,219m; other income declined to Bt101.732m from Bt394.408m.

• EPS was Bt0.22 in Q3 versus Bt0.23 and Bt1.01 for 9M versus Bt1.15.

Segment performance

• Q3 admissions revenue rose 17% to Bt1,282m as guest counts increased to 8.88m from 7.51m; concession revenue rose 19% to Bt472m.

• Q3 advertising revenue increased 30% to Bt369m; bowling revenue fell 4% to Bt118m after two branch closures.

• Q3 movie-content revenue rose 197% to Bt108m, supported by film releases and Free TV licensing; rental and service revenue was Bt107m.

• 9M segment revenue: cinema Bt6,184m; bowling and karaoke Bt891m; advertising Bt353m; rental and services Bt324m; movie content Bt278m.

• 9M segment results: cinema Bt668m and bowling and karaoke Bt574m; advertising Bt3m, rental and services loss Bt13m, and movie-content loss Bt77m.