Business
JM | Sep 15, 2021

Big jump in Main Event July quarterly revenues

/ Our Today

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Revenues from digital signage services were a substantive driver of the quarter’s performance

Main Event

Main Event Entertainment Group Limited has seen a massive 307 per cent increase in revenues during the July third quarter to close the period at $243.35 million.

This is relative to the $59.78 million booked for the corresponding period in 2020. Main Event reports that “revenues from digital signage services were a substantive driver of the quarter’s performance. A one-off transaction completed in July 2021, contributed significantly to the results”.

Gross profit for the quarter increased 277 per cent from $40.57 million in 2020 to $152.95 million for the third quarter under review. Total expenses for the quarter amounted to $115.48 million, 38 per cent higher relative to last year’s comparable quarter of $83.50 million.

Operating profit for the quarter amounted to $37.49 million versus a loss of $42.78 million booked July 2020. However, profit before tax for the quarter closed at $29.68 million relative to a loss of $47 million booked 12 months earlier.

Third quarter performance reverses loss in the comparable period

Main Event reported net profit of $28.68 million for the third quarter versus a loss of $45.54 million for the comparable period in 2020. However for the combined three quarters revenues were down to $592.73 million compared to the $944.59 million booked for the period ended July 31, 2020, a 37 per cent decrease year over year.

Direct expenses for the nine months decreased 52 per cent year over year to $248.76 million relative to $521.30 million recorded in the prior corresponding period. Gross profit for the period was reduced by 19 per cent to $343.98 million (2020: $423.29 million).

Total expenses declined by 20 per cent to $322.32 million versus $403.25 million recorded for 2020. Of this, administrative and general expenses fell 29 per cent to $212.02 million, while depreciation expense decreased two per cent to $92.95 million.

Main Event CEO Solomon Sharpe alongside COO Richard Blair. (Photo: PSN Europe)

Selling and promotion expense declined by 63 per cent to $3.14 million relative to $8.47 million booked last year. Consequently, Finance cost year over year, increased by approximately two per cent to $12.68 million (2020: $12.46 million) at the end of July 2021.

Net profit slightly up for nine-month period

Main Event recorded profit before taxation of $9.02 million, a rise of 11 per cent when compared to last year’s corresponding period of $8.11 million. The company reported tax credit of $147,000 (2020 tax credit: $562,000) during the period, resulting in net profit totalling $9.17 million, a six per cent increase year over year (2020: $8.67 million). 

As at July 31, 2021, Main Event assets totalled $856.42 million (2020: $848.69 million), $7.73 million more than its value a year ago. This decrease in total assets was largely driven by a 100 per cent increase in ‘Receivables’ which amounted to $150.18 million (2020: $75.11 million).

Monies due from related companies also contributed to the upward movement in total assets with a 74 per cent increase from $14.80 million booked as a July 31, 2020 to $25.75 million for the period under review. Equity attributable to stockholders of the company amounted to $542.78 million (2020: $560.51 million).

This translated to a book value per share of $1.81 relative to $1.87 for the corresponding period in 2020.

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