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FirstCaribbean International Bank Reporting Lower Net Income Of US$22.5M In Q1 2019, Down US$15.7M Or 41% From 2019 Q1 Net Income Of US$38.2M.

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FirstCaribbean International Bank Limited is reporting lower net income of US$22.5 million in the first quarter ended 31 January, 2019, down US$15.7 million or 41% from the first quarter’s net income of US$38.2 million in the prior year.

On an adjusted basis, net income was $44.4 million after adjusting for $21.9 million in items of note.

Chief Executive Officer Colette Delaney commenting on the results indicated that these items include US$21.9 million in deferred tax asset write off as a result of the change in the corporation tax rate in Barbados, US$4.4 million incremental provision for credit losses relating to the impending restructuring of Government of Barbados US dollar denominated debt, and a partial release of credit loss allowances of US$4.4 million related to hurricanes in 2017.

Excluding these items of note, the Bank showed an improvement from prior year net income of $6.2 million or 16%.

Commenting further she reported that total revenue was $153.7 million compared with $143.4 million, up $10.3 million or 7% from the first quarter a year ago, primarily due to higher interest earnings from performing loans, cash placements and income from foreign exchange earnings.

The Bank, she said continued to see growth in performing loans with 4% increase year over year after adjusting for the early repayment of a loan previously made to a major shareholder.

Operating expenses were $99.4 million, up $5.2 million or 6% from the first quarter a year ago due to higher salary and benefits and investments in technology and systems.

Credit loss expense on financial assets of $7.3 million was up $1.9 million against prior year due to growth in performing loan balances and model enhancements.

The Directors have approved a quarterly dividend of $0.0125 per share which will be paid on 26 April 2019 to shareholders of record on 29 March 2019.

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Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.

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Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.

The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.

Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.

Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.

Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.

Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.

Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.

Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.

While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.

Solomon Sharpe Chief Executive Officer

For More Information on Main Event Entertainment Group Limited (MEEG) Unaudited Results, Q1 – Three Months Ended January 31, 2025 (Revised) Click Here

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