Major Cineplex (MAJOR) Q1 2020 earnings summary

Executive summary

• Q1 revenue was Baht 1,321.7m, down from Baht 2,399.9m; consolidated net loss was Baht 254.3m amid COVID-19 closures from 18 March.

• Cinema, bowling, karaoke and ice-skating operations were temporarily closed under emergency measures; operations spanned 815 screens across 171 locations in Thailand, Cambodia and Laos.

Financial highlights

• Consolidated gross profit was Baht 272.2m versus Baht 832.9m; gross margin rate was 21% versus 35%.

• Loss attributable to parent shareholders was Baht 255.0m; basic and diluted EPS was negative Baht 0.29 versus positive Baht 0.24.

• Finance costs were Baht 56.0m versus Baht 61.1m; share of profit from investments was Baht 72.1m versus Baht 97.3m.

• SG&A declined 5% YoY to Baht 593m, while revenue fell 45%, raising SG&A to 45% of revenue from 26%.

Outlook and guidance

• Management was reducing operating costs, evaluating operational effects and preparing business-resumption plans, subject to permission; no quantified guidance was stated.

• The 2H20 slate estimated 20–25 Thai movies; Hollywood and Thai release dates remained subject to change.

• Reopening plans included a maximum of 50 seats per screen initially, distancing measures and scheduled showtimes emphasizing cost efficiency.

• Expansion plans were adjusted for 2020; 30 additional screens were listed for pending 2H20 locations, following three screen openings in Q1.