mm2 Asia's 2Q FY2018 Net Profit Up 133% from 2Q 2017 to S$6.3 million, 1H FY2018 Net Profit Up 7
mm2 Asia Ltd. (“mm2 Asia”, “mm2 全亚影视娱乐有限公司” or collectively with its subsidiaries, the “Group”), is pleased to announce its financial results for the second quarter period ended 30 September 2017 (“2Q FY2018”), with its net profit rising 133% to S$6.3 million.
mm2 Asia Executive Chairman, Mr Melvin Ang (洪伟才) commented, “Following the success we had in our first quarter, we continue to deliver on our promise to pursue steady quarter-on-quarter, year-on-year growth. Our second quarter was marked by several milestones, including our much anticipated transfer to the Mainboard in August 2017, and the completion of the acquisition of the Lotus cinemas in 13 locations in Malaysia, officially making us the 4th largest cinema operator in the country. In the second half of FY2018, we will continue to strive harder to tap on various growth opportunities across the region.”
2Q FY2018 Financial Highlights
1H FY2018 Financial Highlights
Performance Review
The Group’s revenue increased to S$31.4 million for the three-month financial period ended 30 September 2017 (“2Q FY2018”), up 45% from S$21.6 million for the threemonth financial period ended 30 September 2016 (“2Q FY2017”). This was attributed by additional revenue generated from UnUsUaL Limited (“UnUsUaL”), which recorded event and concert promotion revenue of S$13.3 million.
As a result, the Group’s 1H FY2018 revenue stands at S$56.0 million, up 60% from S$35.0 million in 1H FY2017. As a result, the Group’s 2Q FY2018 gross profit increased by 51% from S$9.7 million in 2Q FY2017 to S$14.6 million in 2Q FY2018. The Group’s 1H FY2018 gross profit also experiences a similar increase of 52%, going from S$19.8 million in 1H FY2017 to S$30.0 million.
Consequently, the net profit for 2Q FY2018 increased by 133% to S$6.3 million from S$2.7 million in 2Q FY2017. This translates into a net profit attributable to shareholders of S$4.6 million for 2Q FY2018. In turn, 1H FY2018 net profit went up 79% from 1H FY2017, from S$7.8 million in 1H FY2017 to S$14.0 million. The current earnings per share (“EPS”) as of 30 September 2017 stands at S$ 0.01.
Business Outlook
The Group’s core business of producing, distributing and placing products for movies and TV/online content continues to form the majority of the Group’s revenue, contributing approximately 40% with S$22.2 million. The Singapore/Malaysia version of The Voice, which the Group produces, is currently on air in Singapore/Malaysia until December 2017.
The Group will continue to focus on its core business in Singapore and Malaysia as well as expand it to Hong Kong, Taiwan, China and also the USA. We expect productions in these markets to continue to form a bigger part of our revenue into FY2019.
With the completion of the acquisition of cinema business from Lotus Fivestar Cinemas (M) Sdn. Bhd. in September 2017, the Group is officially the fourth largest cinema operator in Malaysia now. The Group is also excited to pursue the recently announced proposed acquisition of the cinema business of the Cathay Organisation.
Concert and event promotion revenue from the newly-listed subsidiary, UnUsUaL, contributed to 35% of the Group’s 1H FY2018 revenue. UnUsUaL, as a listed company, will continue to diversify its offerings, expand out of Singapore and Malaysia, and move up the value chain as an Originating Producer to sign artistes for regional tours.
- End of Press Release -
Note to media: Please read this press release in conjunction with the Company’s announcement released on SGXnet on the same date, which can be found here.
