Source: Pixabay
mm2 Asia Ltd (mm2 Asia)
Source: mm2 Asia
Headquartered in Singapore, mm2 Asia has businesses across the content, immersive media, cinema, event and concert industries in Singapore, Malaysia, Hong Kong, Taiwan, China and the US. The company also holds majority stakes in Vividthree Holdings Ltd and UnUsUaL Limited.
FY 2019 Financial Highlights:
Source: mm2 Asia FY 2019 Annual Report
· For the financial year ended 31 March 2019 (FY 2019), mm2 Asia achieved a year-on-year increase of 38.6% in revenues to SGD 266.2 million.
· Consequently, the company’s gross profit surged by 42.3% from SGD 87.3 million in FY 2018 to SGD 124.2 million in FY 2019.
· However, mm2 Asia’s profit before income tax only rose by 8.7% to SGD 39.8 million in FY 2019. This was mainly due to a 48.7% increase in administrative expenses to SGD 69.9 million in FY 2019.
Performance Drivers:
Source: mm2 Asia FY 2019 Annual Report
Performance Drivers (Positive Factors)
- Cinema Operations Segment
mm2 Asia’s Cinema Operations segment was the main contributor behind the company’s increased revenues for FY 2019. The Cinema Operations segment recorded an increase of SGD 55.7 million in revenues – from the SGD 45.0 million last year to SGD 100.7 million in FY 2019. The increase was primarily due to the consolidation of the full 12-month financial results of the previous financial year’s acquisitions (subsidiary Cathay Cineplexes, and cinema business assets in Malaysia) as opposed to the partial consolidation recorded in FY 2018.
- Event Production and Concert Promotion Segment
mm2 Asia’s Event Production and Concert Promotion segment, UnUsUaL Limited, also contributed to the rise in FY 2019’s revenue. The segment posted an increase of SGD 9.7 million in revenues – from SGD 45.4 million in FY 2018 to the SGD 56.2 million recorded this financial year.
- Post and Content Production Segment
In addition, the company’s Post and Content Production segment, Vividthree Holdings, registered a rise in revenue of SGD 3.0 million – from SGD 6.3 million last year to SGD 9.3 million in FY 2019.
- Core Business Segment
Meanwhile, mm2 Asia’s Core Business segment improved by SGD 4.6 million – from SGD 93.6 million in FY 2018 to SGD 98.2 million in FY 2019.
Performance Drivers (Negative Factors)
- Substantial Increase in Expenses
mm2 Asia’s administrative expenses rose by 48.7% to SGD 69.9 million in FY 2019, owing to the company’s consolidation of the full 12-month financial results of the previous financial year’s acquisitions, as well as the expansion of the post and content production segment since the listing of Vividthree Holdings.
The company’s finance expenses also surged by 265.3% to SGD 17.9 million in FY 2019. This was due to expenses arising from the issuance of convertible bonds and notes, a medium term note program and the drawdown of bank borrowings.
- Share of Profits of Associated Companies and Joint Venture
The share of profits of associated companies and joint venture declined by 80.4% – from the SGD 112,000 in FY 2018 to SGD 22,000 in FY 2019. This came on the back of lower profits generated by mm2 Asia’s associated companies.
Source: mm2 Asia FY 2019 Annual Report
