mm2 Asia (1B0) H1 2024 earnings summary

Executive summary

• 1H FY2024 revenue rose 146.2% YoY to S$128.7m; net profit was S$10.8m versus a S$6.2m loss, supported by recovery in Content and strong Concert and Event activity.

• Profit attributable to equity holders was S$3.0m; continuing-operations basic EPS was 0.11 cents and diluted EPS was 0.13 cents.

Financial highlights

• Revenue increased to S$128.7m from S$52.3m; cost of sales rose 126.6% to S$89.5m, while gross profit increased to S$39.3m from S$12.8m.

• Profit before tax rose to S$14.7m from S$1.8m; income tax expense was S$3.9m and net profit from continuing operations was S$10.8m.

• EBITDA rose 220.4% YoY to S$33.0m, driven by higher Content and Concert and Event revenues.

• Administrative expenses rose 58.9% to S$11.6m; finance expenses increased 136.1% to S$8.5m, primarily reflecting higher interest rates and borrowings.

• Operating cash flow was S$24.3m versus S$4.5m used in the prior-year period; net cash increased S$8.8m to S$17.6m, net of overdraft.

Outlook and guidance

• A renounceable rights issue of up to 1,776,154,610 shares at S$0.02 each, on a 1-for-2 basis, was planned; financing review, cost containment and deleveraging efforts continue.

• Directors considered the going-concern basis appropriate, citing net current assets of S$33.2m and ongoing financing actions; continued lender support remains an expectation, not a certainty.

• Plans included two cinema sites in Kuala Lumpur, with expected soft openings at end-2023 and in 2025, and a Cathay Cineplexes outlet at Century Square in November 2023; regional expansion and diversification remain priorities.