SINGAPORE (Nov 3): mm2 announced that earnings for 2Q17 more than doubled to $4.6 million compared to $2.0 million in 2Q16.
Revenue for the second quarter ended September also saw a 45.4% increase to $31.4 million from $21.6 million last year, largely contributed by events production and concert promotion business by UnUsUaL, a subsidiary corporation acquired by the group in August 2016 and its core business.
See: UnUsUaL's 2Q earnings drop 30.8% to $2.5 mil
In line with increased revenue, cost of sales grew 40.9% to $16.8 million compared to $11.9 million the previous year, mostly from the group’s the events production and concert promotion business.
Meanwhile, the group’s administrative expenses for 3Q17 saw a 15.8% increase to $6.69 million from $5.32 million a year ago.
This was mainly due to a $1.1 million increase in employee compensation cost as the group acquired new businesses and increased incentives for staff and management, as well as a $400,000 increase in depreciation costs from the purchase of equipment by UnUsUaL.
However, finance expenses for 2Q17 dropped 77.8% to $212,000 from $955,000 last year.
On the other hand, the group on Thursday also announced that it has entered into an option agreement with Cathay Organisation to acquire 100% of Cathay Cineplexes.
Following this acquisition, the group will own cinemas with a total of 206 screens across 27 locations, including in Malaysia operated by subsidiary, mm2 Screen Management.
See: mm2 Asia in option agreement to acquire Cathay Cineplexes for $230 mil
Melvin Ang, executive chairman of mm2 Asia, says, “In the second half of FY2018, we will continue to strive harder to tap on various growth opportunities across the region.”
The group will also continue to focus on its core business in Singapore and Malaysia as well as expand it to Hong Kong, Taiwan, China and also the USA. The group expects productions in these markets to continue to form a bigger part of its revenue into FY19.
Shares in mm2 closed 1 cent lower at 56 cents on Thursday.
