MAINBOARD-listed media company mm2 Asia, which acquired 100 per cent stake in Cathay Cineplexes in 2017, is shutting a third cinema complex under the brand in less than a year – this time, the one at Parkway Parade.

In a Facebook post on Monday (Aug 21), Cathay Cineplexes announced that Aug 27 will be the last day of operations for the branch in the major suburban mall in Marine Parade, while assuring that all other of its cineplexes will remain open as usual.

This comes after the company ceased operations at the iconic The Cathay building on Handy Road on Jun 26, 2022, and Cathay Cineleisure Orchard on Grange Road on Jun 30, 2023.

Once its Parkway Parade branch closes, the cinemas operated under the Cathay brand will whittle down to five: Causeway Point in Woodlands, AMK Hub in Ang Mo Kio, Downtown East in Pasir Ris, West Mall in Bukit Batok, and Jem in Jurong East.

Cathay is however set to open a new six-screen cinema complex at Century Square later this year. Its April announcement noted that the outlet will open by the fourth quarter of 2023.

News of the latest closure came after the embattled mm2 Asia reported a net loss of S$122.5 million for its full financial year ended Mar 31, 2023, extending losses of S$42.1 million from FY 2022.

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In the bourse filing in May, the company had noted that its cinema segment’s losses before income tax rose by some S$105 million, from S$25 million to S$130 million in the reporting year, owing to impairment losses amounting to S$117.7 million.

Then, the company also said the cinema segment’s financial results would be classified as “discontinued operation” as of Mar 31, 2023, as a result of the exchangeable bond subscription agreement, which was deemed completed on Mar 24 this year. 

“While we retain 100 per cent equity interest in mmConnect and its subsidiaries, on Mar 31, 2023, under the requirement of relevant accounting standards, the group no longer consolidated the cinema segment in the group’s balance sheet,” it had said.

As a result, the group recognised a decrease in the carrying value in the cinema segment, which includes its property, plant, and equipment of S$42 million, goodwill of S$84 million after the S$117.7 million impairment loss and total liabilities of S$89.1 million, it added.

For FY 2023, the group had reported a loss from discontinued operations amounting to S$99 million.

Shares of mm2 Asia traded down 2.5 per cent to close at S$0.039 on Monday, after the mid-day Facebook announcement.