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mm2 posts 17.7% drop in Q2 earnings on higher finance expenses

MAINBOARD-LISTED mm2 Asia saw net profit for its second fiscal quarter fall 17.7 per cent on higher finance expenses, including the one-off unwinding interest on the deferred purchase consideration for the acquisition of Cathay Cineplexes, the group said on Wednesday night.

Second-quarter net profit was S$3.7 million compared to S$4.5 million a year ago. After adjusting for the one-off interest amount, net profit would have risen 17.7 per cent to S$5.3 million.

Revenue more than doubled to S$64.9 million from S$31.4 million for the corresponding quarter of the previous year, mainly from the cinema business that was acquired by Q3 2018. The group's core business and event production and concert promotion business also contributed to the rise in revenue.

mm2 Asia’s executive chairman Melvin Ang said: "We are encouraged by the continued momentum across our businesses. We strive to focus relentlessly on our core business, as well as the rest of the businesses, innovating swiftly and driving operational excellence."

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For the first half of fiscal 2019, unadjusted net profit increased 0.9 per cent to S$10.98 million, while revenue doubled to S$113.9 million from S$56 million.

Earnings per share for Q2 2019 was 0.32 Singapore cent, compared with 0.39 cent a year ago. For the year-to-date period, earnings per share was 0.94 cent versus 0.99 cent for Q2 2018.

No dividend was declared for the current period.

mm2 shares closed flat at S$0.37 on Wednesday before results were out.