mm2 Asia (1B0) H1 2025 earnings summary

Executive summary

• 1H FY2025 revenue fell 32.1% YoY to S$87.3m from S$128.6m; EBITDA declined to S$19.0m from S$33.0m.

• PAT was S$3.8m excluding associate cinema losses, versus S$15.5m a year earlier; including the associate, the period recorded a S$3.9m after-tax loss.

• Content growth was offset by fewer Concert and Event projects and deeper cinema losses.

Financial highlights

• Gross profit decreased to S$24.3m from S$39.4m; gross margin contracted to 27.8% from 30.6%.

• Pre-tax result swung from a S$14.8m profit to a S$1.4m loss; net result moved from a S$10.9m profit to a S$3.9m loss.

• Administrative expenses fell 15.5% YoY to S$9.8m, while finance expenses rose 1.2% to S$8.6m.

• Net cash from operating activities was S$2.8m versus S$24.3m; cash and cash equivalents ended at S$10.1m.

Outlook and guidance

• Cautiously optimistic for the next 12 months, barring unforeseen circumstances; Content reported a positive trend ahead.

• Refinancing of existing loans is underway, with completion targeted in FY2025 to improve liquidity.

• Global cinema recovery is expected to strengthen from 2025.