Local entertainment content and media company mm2 Asia announced that it has narrowed losses for 1HFY2023 ended September by 52.7% to $5.4 million, compared to $11.4 million in 1HFY2022.
This comes on the back of revenue increasing by 70.7% y-o-y to $79.0 million from $46.3 million a year ago. Gross profit hence came in 169.7% higher at $25.3 million.
While all segments showed improvement, the increase was driven primarily by the group’s cinema and concert businesses, which benefited from the government easing pandemic restrictions such as removing capacity restrictions in cinemas and allowing the resumption of in-person concerts and events.
Cinemas in Singapore and Malaysia have been operating at full capacity since end-April 2022, and audiences returned to cinemas for the summer blockbusters. Revenues from the group’s cinema business grew approximately 164% to $26.7 million in 1HFY2023 from $10.1 million in 1HFY2022.
The easing of pandemic restrictions has also seen a resumption of in-person concerts. In May, UnUsUaL Entertainment announced that Taiwanese singer A-LIN would be the first performing artiste to perform in Singapore since the start of the pandemic. The concert sold out to a limited capacity audience at the Singapore Indoor Stadium.
Further restrictions have since been relaxed and all capacity restrictions have since been lifted. The group’s outlook for the concerts and events business looks strong for the rest of FY2023, driven by record demand and spending on experiences.
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Cash and cash equivalents stood at $4.3 million as at end 1HFY2023.
The group’s post-Covid-19 recovery was fuelled in part by the $19.5 million raised at the beginning of 1HFY2023, via a placement of 390 million shares.
Additionally, the group has entered into a bond subscription agreement with UOB Kay Hian to raise $54 million via a bond deal exchangeable for shares of the group’s cinema business. This proposed transaction is pending regulatory and shareholders’ approvals, and the conditions precedent to completion.
“The group has recorded strong recovery in its financial results for the first half FY2023. This demonstrates that the group’s businesses are on track to recover to pre-pandemic levels. This is highly encouraging as our cinema and concert businesses did not even operate at full capacity during this period. In addition, the outlook for 2HFY2023 is promising; and in general, the second half of the financial year is expected to perform better than the first,” says executive chairman of mm2 Asia, Melvin Ang
“Going forward we expect to continue the upward trend, with strong demand for cinema entertainment during the holiday season through to Chinese New Year, as well as ongoing and increasing demand for concerts and live events now that Covid-19 restrictions have been lifted,” adds Ang
Shares in mm2 last traded at 4.7 cents on Nov 14.
