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LASCO Financial Services Reporting That Profits For The Three-Months Ending September 2019 Fell By $76.9M, Resulting In A Loss Of $16.3M

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LASCO Financial Services Limited’s (LFSL) is reporting that profits for the three-months ending September 2019 fell by $76.9M, resulting in a loss of $16.3M, this as consolidated second quarter transactions generated $66.9M more revenue than the corresponding three-month period in 2018, closing with total revenue of $653.6M.

Managing Director Jacinth Hall-Tracey reported that this result represents an 11% year over year growth and is being driven by an increase in business from the Subsidiary, LASCO Microfinance Limited and Cambio trades in the parent business.

Revenues from remittance remained relatively flat over the period.

Expenses for the quarter rose significantly by 28.5%, primarily caused by the increase in estimated credit losses.

Commenting on this, she noted that they reviewed the business and prudently increased the provisions for the portfolio.

Consolidated profit after tax for the six months ending September 2019 was $74.7M, down significantly from the corresponding period’s $161.1M.

The year to date decline in profit was impacted by write offs and growth in staff expenses as they bolstered capacity in collections, finance and administrative support to align with the growth and volume of the portfolio.

The year to date loan portfolio of $2.0B net of write offs is a 40% increase in value and number of clients.

The loans subsidiary is now the leading revenue driver and is contributing 39% of total revenues, which is in keeping with their strategic objectives of having a strong and diversified revenue base.

Investments in technology to drive growth and efficiency is being deployed on a phased basis, and is expected to be fully deployed by financial year end.

Towards the end of the second quarter, LFSL entered the market with its first payment product, LASCOPay; a co-branded prepaid MasterCard.

Targeted primarily at the large remittance customer base and the general unbanked population, this new product is expected to lead LFSL into the much anticipated strategic objective of Financial Inclusion for a large sector of Jamaicans who currently receive micro payments.

Management is already delighted at the rate of adoption and expects to achieve its targets for this financial year.

Total assets increased year over year by $478.2M or 13% to close the quarter at $4, 107.7M.

Commenting further she noted that the general direction of the business is an indication of the growth potential for LASCO Financial Services, in key growth products; micro finance and micro payments.

Core business, cambio and remittances, though mature are still profitable and provide opportunities for verticals to be developed she reported.

LASCO Financial Services Limited closed the quarter with negative earnings per share of 1 cent.

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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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