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mm2 reports positive cash flow amid coronavirus disruptions
THE coronavirus outbreak has affected mainboard-listed film production company mm2 Asia's core content production operations and cinema business, although the group still has a positive operating cash flow position.
In a bourse filing on Tuesday, the company said its collection of trade receivables had not been significantly affected by the Covid-19 pandemic, and it had refinanced its loan facility after entering a five-year secured loan of S$115 million with United Overseas Bank on March 21.
It added that it was confident of meeting fiscal responsibilities and operating capital requirements.
mm2 also said it was taking steps to mitigate the short-term impact of the virus outbreak on its core content production operations and cinema business, which have been affected as more consumers stay at home, and mega movie releases from Hollywood get postponed.
The measures include tapping government support packages, reducing fixed costs, and accelerating its Asian programming.
The company reassured investors of its strong core business order book, which it attributed in particular to pent-up demand from China.
It believes demand for quality content would remain strong, and anticipates a backlog of Hollywood movies to be released once the virus is contained.
mm2 Asia shares were trading up 0.2 Singapore cent or 1.8 per cent at 11.4 cents as at 11.10am on Tuesday.