Durrant Pate/Contributor

Operating in an increasingly competitive and largely difficult business environment continues to take a toll on Main Event Entertainment Group’s profit margins.

Main Event recorded a net profit of J$100.25 million for the quarter, representing a decline of 15 per cent or J$17.7 million relative to the corresponding period in 2023. Consequently, earnings per share declined by 15 per cent to J$0.33 per share.

Total revenues for the quarter went down by J$59.23 million to J$567.75 million, reflecting a decrease of 9.0 per cent. This was mainly due to a one-off event for one of the company’s major clients, which is not likely to recur in subsequent periods.

Diversifying client base

The quarter’s performance was anchored by diversifying its client base through strategic targeting and efficient management of its operations. Main Event says it has been strategic in its efforts to protect margins and gross profit for the quarter, which closed on J$315.822 million compared to the $312.61 million earned in 2023.

The board and management say, “This demonstrates the company’s ability to be alert and responsive to market conditions. Gross margins improved to 56 per cent, up from 50 per cent in the corresponding period. The company continues to generate revenues from activities requiring reduced external support”.

‘Cost of Sales’ amounted to J$251.93 million (2022: J$314.38 million), a decline of 20 per cent year-over-year. Administrative and general expenses increased by 15 per cent to close at J$165.23 million (2022: J$144.15 million), while depreciation costs went down by 9.0 per cent from J$30.50 million in 2022 to J$27.61 million for the quarter.

Other financial highlights

As a result, total expenses for the first quarter amounted to J$206.35 million, a 12 per cent increase relative to J$183.65 million reported in 2022. Finance costs totalled J$3.06 million, a 21 per cent increase from the corresponding period last year (2022: $2.52 million).

Main Event’s assets totalled J$1.23 billion (2022: J$1.17 billion). Short-term deposits increased by J$83.35 million or 54 per cent, while cash balance fell by J$78.27 million or 29 per cent, owing to the prior financial year investment of over J$135 million via internal cash resources.

Shareholder’s equity was J$912.66 million (2022: J$788.95 million), representing a book value per share of J$3.04 (2022: J$2.63).