Solomon Sharpe Chief Executive Officer For Main Event Entertainment Group Limited Has Released The Following Unaudited Financial Statements For The Quarter Ended April 30, 2024 (Q2).
Performance Highlights:
The company generated revenue of $418.575 million for the second quarter ended April 30, 2024. This represents a decline of $113.313 million or 21% for the quarter when compared to the second quarter of 2023.
For the half year, the company earned revenue of $986.327 million, a decline of $172.548 million or 15% relative to the corresponding period. The decline is the result of a lower performance in traditional revenue sources, caused by the changing landscape within the
entertainment sector, a decline in marketing spend by some of our major clients and a lower-than normal return from Carnival in Jamaica, 2024. The company’s revenue was also impacted by biennial events which contributed significantly to our revenue during the second quarter of the corresponding period.
Gross profit for the quarter was $198.064 million. Compared to the second quarter of 2023, this represents a decrease of $104.669 million 16%; while for the six months ended April 2024, gross profits fell by $101.457 million or 16% to $513.887 million.
Notably, the company has invested heavily in critical maintenance exercises to ensure the upkeep of its audio, visual, and lighting equipment, highlighting its commitment to quality and excellence.
These investments have temporarily impacted on gross margins, which fell to 47% for the quarter but will yield long-term benefits and ensure the company’s continued competitiveness.
Net profit for the second quarter was $20.016 million, a decline of 73% compared to the
corresponding 2023 quarter. At mid-year of the 2024, net profit of $120.271 million represents a decline $72.107 million or 37%.
Administrative and general expenses for the quarter were $133.414 million, a decrease of $55.734 million or 29% relative to $189.148 million last year, and $298.645 million for six months ended April 2024, down $34.656 million or 10% versus the corresponding period in 2023.
These results were driven by lower activity compared to the corresponding 2023 periods. Despite the overall decline in operating expenses, there were increases in key expense categories, namely security expense and staff costs resulting from increased staffing to support the company’s growth objectives, with a focus on enhancing its capabilities and driving innovation. Depreciation and amortisation charges increased by 61% and 203%, respectively, owing to significant capital investments, and right-of-use adjustments.
The increase in finance costs was driven by an increase in interest expense on right-of-use assets.
Taxation charges decreased by $12.470 million or 47% for the six months ended April 2024.
For the second quarter ended April 30, 2024, earnings per share declined to $0.07 from $0.25 per share in the corresponding period; a decrease of 73%. Earnings per share of $0.40 for the half year, represented a $0.25 per share or 37% decrease over the six months ended April 30, 2023.
The company’s total assets fell by $33.342 million or 3% to $1,219.929 million, compared to $1,253.271 million at April 30, 2023. Receivables decreased by $124.754 million or 29%, partly because of our reclassification of deposits on fixed assets now capitalised.
Loans decreased by $23.869 million or 30%, while Payables decreased by $35.533 million or 15% because of lower operating activities when compared to the six months ended April 30, 2023.
Shareholder’s equity stands at $932.678 million as at April 30, 2024, an increase of $69.303 million or 8% compared to the prior year.
Overall, the company has demonstrated its resilience and ability to navigate challenging times and remains poised for future growth and success.
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