Memories Group Q2 loss widens to US$1.7m on administrative expenses, cost of sales

MYANMAR-FOCUSED tourism player Memories Group, posted a net loss of US$1.7 million for the second quarter ended Sept 30 from a net loss of US$713,000 in the year ago period mainly due to increased administrative expenses from acquisitions and cost of sales.

Therefore, its loss per share widened to 0.47 US cent, from a loss per share of 0.26 US cent in the previous year.

For the three months ended Sept 30, revenue surged to US$255,000 from US$3,000 the previous year.

The gain in revenue was attributed to the full impact from the acquisitions of its hotel/lodge business operating under the name Hpa An Lodge and its tourism and destination management business operating under the name Asia Holidays, the Catalist-listed group said in a Singapore Exchange filing on Thursday morning.

For the quarter, Memories' administrative expenses increased by about US$1.1 million to US$1.8 million from US$709,000 in year ago period. This was mainly due to additional expenses incurred by Memories Group Limited, the Balloons Over Bagan and Asia Holidays businesses and other overhead costs incurred by the group, it said.

Cost of sales for the period was higher by about US$286,000 to US$328,000 from US$42,000 previously.

For the half year, revenue leapt to US$812,000 from US$3,000. Meanwhile, net loss widened to US$3.4 million from US$1.4 million from a year ago as administrative expenses and cost of sales weighed on the bottom line.

Net asset value per share slid to 10.78 US cents as at Sept 30, from 12.47 US cents in six months ago.

Memories Group shares last traded on Oct 9 at US$0.109.