Connect with us

Businessuite Markets

Jamaica Stock Exchange Group Recorded Strong Performance For The Third Quarter

Published

on

Third Quarter Performance

• Net Profit after Tax of $194.9m was 255% greater than the prior year comparable quarter.
• Earnings per share of $0.28 cents reflected an increase of 250% compared to the corresponding quarter in 2023.
• The Return on Equity was 7.1% as against 2.3% in 2023 representing an improvement of 208.7%.

Income
Total Income for the JSEG of $746.4m, represents a $232m (45.1%) increase over the corresponding quarter of 2023. The increase in Income is attributed to Cess which increased by $138.6m (249.7%) when compared to prior year. Fee Income and eCampus increased over prior year by $94.7m (22%) and $3.4m (51.5%) respectively.

Expenses
Total Expenses of $495.9m increased by $76m (18.1%) when compared to the corresponding quarter in 2023. The main expenditure contributing to the increase are as follows:
• Staff Cost was above 2023 comparatives by $14.6m (7.2%). This was due to an 8% cost of living increase and new staff hires to facilitate anticipated growth and enhanced customer service delivery.
• Advertising and Promotion was above 2023 comparatives by $8.3m (50.3%). This is mainly due to additional activities aimed at stimulating growth within the markets.
• Net impairment loss on financial asset was above prior year by $10.7m (110.4%) due to the requirements of the expected credit loss model.

Net Profit
Net Profit after Tax of $194.9m represents an increase of $140m (255%) when compared to the profit of $54.9m for the corresponding period in 2023.

Financial Position
Total JSEG Assets as at September 30, 2024, of $3,365.3m, reflects an increase of $411.8m (13.9%), when compared to holdings as at September 30, 2023, due primarily to increase in Trade and Other Receivables and Government Securities Purchased Under Resale Agreement.

Total Equity of $2,739.8m as at September 30, 2024, reflects an increase of $331.3m (13.8%) and $120.8m (4.6%) over the comparable positions at the end of September 30, 2023, and December 31, 2023, respectively.

Revenue Reserves reflect an increase of $125.3m (7.4%) over the position as at December 31,2023, which is net of $239.1m paid to shareholders as dividend and the nine months’ profit.

Market Developments & Outlook
The Third Quarter performance has been particularly good. We anticipate that as interest rates trend down and other market turbulences subside, investors and companies will be more active in the market, which will result in improved performance. We have made significant stride in our diversification strategies, and this has and will continue to support us as we cope with geo-political unrest and other uncertainties in the economy that have impacted the market.

The JSEG will continue our effort at ensuring that our governance framework is strong and our risk mitigating measures which assists in driving sustainability are robust. We remain resolute in our commitment to maximize shareholders’ wealth, through the improvement in income and the management of our expenditure while providing strong support to stakeholders and the country at large.

Marlene J Street Forrest Managing Director Jamaica Stock Exchange Group
For More Information CLICK HERE

BNC3

JSE launches Green Bond Plus Platform

Published

on

Continue Reading

BNC3

The Smart Way to Invest

Published

on

Continue Reading

BNC3

Can Investing Solve Climate Change?

Published

on

Continue Reading

BNC3

Taking Stock LIVE – Fontana’s Next Move; What’s going on with Jamaica Broilers?

Published

on

Continue Reading

Businessuite Markets

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

Published

on

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

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x