mm2 Asia (1B0) Q4 2023 earnings summary

Executive summary

• FY2023 continuing-operations revenue rose 61% YoY to S$134.3m, with gross profit up 216% to S$27.7m; a S$22.7m loss before tax included S$24.2m of fair value losses.

• Adjusted EBITDA increased 60.8% YoY to S$24.4m, while the cinema segment’s discontinued operations recorded a S$99m loss.

Financial highlights

• Q4 FY2023 continuing-operations revenue grew 24% YoY to S$30.6m; cost of sales fell 17%, driving a turnaround to S$6.7m gross profit from a gross loss.

• FY2023 gross profit rose 216% YoY to S$27.7m; gross margin improved to 20.6% from 10.5%.

• Excluding S$24.2m of non-operating fair value losses, FY2023 would have been profitable by approximately S$1.4m; reported loss before income tax was S$22.7m.

Outlook and guidance

• Focus moving ahead on content and live entertainment, alongside divestment of some businesses; these areas were described as having nearly fully recovered post-COVID globally.