mm2 Asia (1B0) H1 2023 earnings summary

Executive summary

• H1 FY2023 revenue rose 70.7% YoY to S$79.0m as cinema and live-event activity resumed; EBITDA increased to S$17.4m from S$11.9m.

• Net loss narrowed to S$6.2m from S$13.8m; management expected H2 FY2023 to outperform H1.

Financial highlights

• Gross profit increased 169.7% YoY to S$25.3m, with gross margin rising to 32.0% from 20.2%.

• Loss before tax narrowed to S$5.3m from S$13.0m; basic loss per share was 0.21 cents versus 0.51 cents.

• Adjusted EBITDA was S$19.6m excluding SFRS (I) 16 effects and adding back unrealised FX losses; pro forma net loss excluding SFRS (I) 16 effects was S$6.6m.

• Administrative expenses rose 4.8% to S$22.9m; finance expenses declined 1.6% to S$6.8m.

Segment performance

• Core revenue increased 30.9% YoY to S$42.9m; adjusted EBITDA was S$9.6m versus S$9.4m.

• Cinema revenue rose 164.6% to S$26.7m as full-scale operations resumed; adjusted EBITDA increased to S$7.5m from S$4.5m.

• Concert and event revenue reached S$6.3m from S$0.4m; adjusted EBITDA improved to S$1.9m from a S$0.5m loss.

• Post-production revenue increased 50.0% to S$1.8m, with adjusted EBITDA a S$0.8m loss; digital-content production had no revenue as new MICE/tour shows lacked demand.