SINGAPORE (May 31): mm2 Asia reported $6.2 million in earnings for the 4Q ended March, down 7.5% from $6.7 million a year ago due to lower revenue and expansion costs.
This brings the group’s full year earnings to a total of $19.1 million, representing a 14.7% decline from $22.4 million in FY18.
Revenue for 4Q fell 6.5% on-year to $78.2 million from $83.6 million, although FY19 revenue grew 38.6% to $74.2 million from $192 million a year ago due to higher income from the Cinema business upon accounting for the full year’s contributions Cathay Cineplexes and Lotus Fivestar Cinemas.
Notably, a $2.1 million expected credit loss on financial assets (trade receivables) was recorded over 4Q19, resulting in other losses of $1.1 million for the full year.
Finance expenses for 4Q and FY19 grew 41.6% and 262.4% to $4.8 million and $17.9 million, respectively, mainly due to additional borrowings and the issuance of medium-term note and convertible bonds.
Although administrative expenses slid 7.8% to $18.9 million over 4Q, FY19 administrative expenses spiked by 48.6% to $69.9 million from $47 million in FY18. The group attributes the higher full-year figure to its recent business expansion plans which resulted in a “significant increase in manpower”.
While net profit margin for 4Q rose 16.5% to 12% from 10% a year ago, it fell 29.9% to 10.8% in FY19 from 15.4% in FY18.
Going forward, the group says it will maintain its focus on Asian entertainment and media, specifically in the areas of regional expansion, it is synergised content and platform businesses, and content creation.
“We are actively exploring different avenues to maximise shareholder value, including the possibility of seeking a foreign listing of our cinema business,” says executive chairman Melvin Ang.
Share in mm2 closed 1 cent lower at 24 cents on Thursday.
