Durrant Pate/ Contributor
Main Event Entertainment Group is now seeing a slowing down in its revenue growth, as net profits for the July quarter reached J$23.309 million.
This reflects a decrease of 81 per cent over the third quarter ended July 31, 2022. The company generated revenues of J$428.056 million relative to the J$601.538 earned in the corresponding period of 2022.
The management attributes this marked decline in net income and revenues, as “a direct consequence of timing shifts in the event pipeline. These shifts have slowed the revenue growth in the current quarter, but have also been affording us the time to align our capabilities and services for strategic moves”.
Exceeds year-to-date performance
Despite the decline in the year-over-year third quarter performance, Main Event continues to exceed the corresponding period’s year-to-date performance. The financial results for the nine months ended July 31, 2023 improved with net income of J$215.687 million, which more than double the J$103.941 million earned in the corresponding period.
Revenues of J$1.587 billion for the nine months ended July 31, 2023 represent a significant improvement of 45 per cent over the J$1.094 billion earned in 2022. Net profit for the combined three quarters amounted to J$215.69 million, a 108 per cent increase from the J$103.94 million reported in 2022.
For the third quarter, net profit was J$23.31 million (2022: J$123.78 million). Tax charge for the nine months ended July 31, 2023 had a 107 per cent increase to reach J$28.90 million (2022: J$13.94 million).
As for the July quarter, tax charge amounted to J$2.38 million (2022: J$15.54 million). Earnings per share (EPS) for the nine months amounted to J$0.72 (2022: EPS: J$0.35), while EPS for the July quarter totalled $0.08 (2022: EPS: $0.41).
The 12-month trailing EPS was J$0.88. Cost of sales amounted to J$747.83 million (2022: J$582.92 million), this represents an increase of 28 per cent year over year. Notably, Main Event’s stock price closed trading last week at a price of J$14.52 with a corresponding P/E ratio of 16.56x.
Total income amounted to J$852.77 million for the nine months relative to $511.40 million booked in 2022. Administrative and general expenses increased by 75 per cent to close at J$495.36 million (2022: J$283.57 million). Selling and promotion expenses amounted to J$17.44 million (2022: J$4.83 million).
Big rise in expenses
As a result, total expenses for the nine months ended July 31, 2023 amounted to J$600.78 million, a 56 per cent increase relative to J$383.97 million reported in 2022.
Main Event’s assets totalled $1.25 billion (2022: $987.25 million).
The overall movement was due to increases in ‘Deposits- short term’ and ‘Cash and bank balances’ which ended the period at $229.33 million (2022: nil) and $189.99 million (2022: $111.13 million) respectively; while ‘Receivables’ declined by $62.80 million to close at $341.57 million.
Shareholder’s equity was $856.68 million (2022: $653.69 million), representing a book value per share of J$2.86 (2022: $2.18).