Major Cineplex (MAJOR) Q1 2019 earnings summary

Executive summary

• 1Q19 revenue rose 23% YoY to Bt2,399.865m; core profit increased 19% to Bt176m.

• Profit attributable to owners was Bt205.275m versus Bt284.321m; total profit for the period was Bt211.682m versus Bt286.511m.

• Operating profit was Bt231m versus Bt271m; EBITDA fell 8% to Bt566m and EBIT fell 14% to Bt296m.

• Interim financial information received a review conclusion with no matters identified indicating material non-compliance with Thai Accounting Standard 34.

Financial highlights

• Gross profit was Bt790.810m versus Bt620.063m; total costs were Bt1,609.055m versus Bt1,330.219m.

• Revenue increased Bt450m YoY, with admissions contributing Bt266m of growth; other income was Bt48.888m versus Bt170.474m, including lower dividend income and gains on investment disposals.

• 1Q18 included Bt136m share profit from investments in SF and PVRL following divestment, affecting the YoY net-profit comparison.

Outlook and guidance

• Targeting 60–70 additional screens in 2019 nationwide and internationally, primarily upcountry with Tesco Lotus and Big C; 50–60 screens planned for the rest of 2019.

• 2H19 slate includes an estimated 14 Thai movies, alongside Spider-Man: Far From Home, The Lion King, Frozen 2 and Star Wars: Episode IX.

• Planned movie release dates are subject to change.