Major Cineplex (MAJOR) Q2 2020 earnings summary

Executive summary

• 2Q20 revenue was ฿208.4m, down 93% YoY, and consolidated net loss was ฿486.4m versus net profit of ฿579.5m in 2Q19.

• H1 2020 consolidated net loss was ฿740.6m versus net profit of ฿800.1m in H1 2019, amid COVID-19 closures and restricted reopening.

• Core loss, excluding divestment results, was Bt456mn versus core profit of Bt568mn a year earlier; 2Q20 included a Bt19mn divestment loss versus a Bt2mn gain in 2Q19.

Financial highlights

• 2Q20 gross loss was ฿226.8m versus gross profit of ฿1,207.9m; operating loss was Bt659mn versus operating profit of Bt588mn.

• EBITDA was negative Bt113mn versus positive Bt1,179mn, and EBIT was negative Bt436mn versus positive Bt767mn.

• SG&A declined 30% YoY to Bt432mn, while revenue fell 93% to Bt208mn.

• H1 revenue was ฿1,530.1m versus ฿5,572.3m; gross profit was ฿45.4m versus ฿2,040.8m, and operating loss was ฿902m versus operating profit of ฿846m.

• H1 basic EPS was a loss of ฿0.82 versus earnings of ฿0.88; Q2 basic EPS was a loss of ฿0.53 versus earnings of ฿0.64.

Outlook and guidance

• Reopening was permitted from 1 June, but operations remained below full capacity, mainly due to disruption to movie production in key markets; cost-reduction measures were underway.

• 3Q20 and 4Q20 movie lineups included major planned releases, with release dates subject to change as of 10 Aug 2020.

• The 2020 screen expansion plan was adjusted, with 10 screens listed for the year.