mm2 Asia Q1 profit falls 4.1% on higher cost of sales

FILM production company mm2 Asia's first-quarter net profit declined 4.1 per cent to S$7 million from S$7.2 million a year ago, mainly due to higher amortisation of film rights.

Earnings per share came in at 0.6 Singapore cent for the three months ended June 30, down 3.2 per cent from 0.62 cent for the corresponding period last year.

No dividend was declared for the quarter, because mm2 Asia "intends to conserve cash for expansion and business opportunities", the mainboard-listed company said on Tuesday evening after the market closed.

Revenue inched up by 0.1 per cent to S$49.03 million from S$48.99 a year ago, on the back of better performance in its core and cinema businesses.

This was offset by lower contributions from the event and concert segment, as well as the post-production segment.

Cost of sales rose by 16.8 per cent to S$18.8 million for the quarter, in tandem with higher sales in the core and cinema segments as well as an increase of S$2.4 million in charges in amortisation of film rights.

Shares of mm2 Asia fell 1.7 Singapore cents or 8.29 per cent to S$0.188 at Tuesday's close, before the results were released.