mm2 Asia (1B0) Q3 2023 earnings summary

Executive summary

• 9M FY2023 revenue rose 76.1% YoY to S$141.3m as restrictions eased; net loss narrowed to S$10.1m from S$15.0m.

• Concert and event operations returned to profit, while cinema remained loss-making; net current assets improved to S$35.1m from net current liabilities of S$76.3m at 31 Mar 2022.

Financial highlights

• 3Q FY2023 revenue rose 83.4% YoY to S$62.3m; gross profit increased 33.1% to S$14.2m.

• 9M gross profit rose to S$39.5m from S$20.1m, with gross margin of 28% versus 25%; cost of sales increased 69.2% to S$101.8m.

• 9M net loss narrowed 32.8% to S$10.1m; loss before tax was S$9.1m versus S$14.4m, and attributable loss was S$8.9m versus S$11.8m. 3Q net loss was S$3.9m versus S$1.2m.

• Lower grants and rental support, higher unrealised foreign translation losses and interest costs weighed on profitability; other income fell to S$1.5m from S$8.7m.

Outlook and guidance

• Recovery continued as audiences returned to live events and out-of-home entertainment; no numerical forward guidance was provided.

• Management cited confidence in improving net current assets and eventual profitability; plans included cost containment, deleveraging and financing reviews.