MAINBOARD-LISTED mm2 Asia is still reeling from the S$230 million acquisition of Cathay Organisation's eight cinemas three years ago.

The deal was meant to provide an additional source of recurring income for the company. Instead, the cinema business is weighing on its bottom line, its balance sheet and its shares.

The cinema operations posted a margin on earnings before interest, taxes, depreciation and amortisation (Ebitda) of 12.3 per cent for FY2018 ended March 31. The group's overall Ebitda margin that year was 33.4 per cent. It fared slightly better the subsequent year, posting an Ebitda margin of 17.4 per cent compared with the group's Ebitda margin of 29.5 per cent.