mm2 Asia's 3Q FY2018 Net Profit Up 73% from 3Q FY2017
1. Group’s 3Q FY2018 revenue increased by 191% to S$52.4 million, from 3Q FY2017;
2. Group’s 3Q FY2018 net profit went up 73% to S$8.5 million, from 3Q FY2017;
3. Group’s 9M FY2018 net profit went up 77% to S$22.5 million, from 9M FY2017
SINGAPORE, 7 February 2018 – 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 third quarter period ended 31 December 2017 (“3Q FY2018”), with its net profit rising 73% to S$8.5 million.
mm2 Asia Executive Chairman, Mr Melvin Ang (洪伟才) commented, “Our growth remains on track, and our third quarter saw one of the most exciting milestones in our company’s history, which was the successful acquisition of Cathay Cineplexes Pte Ltd. The move made us the only cinema operator in Malaysia and Singapore, being the second largest in Singapore and the fourth in Malaysia, respectively. In the last quarter of FY2018, we will look forward to more strategic opportunities in Singapore, Malaysia and North Asia. In addition, we are also preparing Vividthree Productions Pte Ltd for its new growth trajectories, and for its proposed spin-off and listing in the third quarter of FY2019.”
3Q FY2018 Financial Highlights
9M FY2018 Financial Highlights
Performance Review
The Group’s revenue increased to S$52.4 million for the three-month financial period ended 31 December 2017, up 191% from S$18.0 million for the three-month financial period ended 31 December 2016 (“3Q FY2017”). As a result, the Group’s 9M FY2018 revenue sits at S$108.4 million, up 104% from S$53.1 million in 9M FY2017.
Consequently, the Group’s 3Q FY2018 gross profit increased by 172% from S$8.9 million in 2Q FY2017 to S$24.2 million in 3Q FY2018. The Group’s 9M FY2018 gross profit also saw a similar increase of 89%, increasing from S$28.6 million in 9M FY2017 to S$54.1 million.
Consequently, the net profit for 3Q FY2018 increased by 73% to S$8.5 million from S$4.9 million in 3Q FY2017. This indicates a net profit attributable to shareholders of S$6.4 million for 3Q FY2018. On the other hand, 9M FY2018 net profit went up 77% from 9M FY2017, from S$12.7 million in 9M FY2017 to S$22.5 million. The current earnings per share (“EPS”) as of 31 December 2017 is S$0.0155.
Business Outlook
The majority of the Group’s revenue still derives from our core business of producing, distributing and placing products for movies and TV/online content, which stands at approximately 48% with S$47.3 million. The first season of the Singapore/Malaysia version of The Voice, which the Group produced, successfully finished its run in Singapore/Malaysia in December 2017.
The Group’s core business in Singapore and Malaysia shows stable growth, and growth opportunities abound in Hong Kong, Taiwan, China, as well as the USA. We expect productions in these markets to continue to form a bigger part of our revenue in FY2019.
With the completion of the acquisition of cinema business from Cathay Cineplexes Pte Ltd in November 2017, the Group is officially the second largest cinema operator in Singapore now. Furthermore, the Group is the only cinema operator that has a major presence in both Malaysia and Singapore.
The Group will also focus on the creation, development and exploitation of digital IP assets, through Vividthree Productions Pte Ltd. The Group is preparing Vividthree Productions Pte Ltd for listing on SGX Catalist, allowing it to tap the capital and talent markets more efficiently without relying on the Group’s financing.
Concert production and event promotion revenue from the newly-listed subsidiary on SGX Catalist, UnUsUaL Limited (“UnUsUaL”), continues its expansion out of Singapore and Malaysia, and into North Asia. In October 2017, UnUsUaL signed letters of intent with Feld Entertainment to present 48 “Disney on Ice” shows in Taiwan and South Korea. Moreover, UnUsUaL initiated a collaboration in music content creation with popular Taiwan-based Singaporean singer-songwriter- JJ Lin’s music production company, JFJ Productions of Taiwan in December the same year. UnUsUaL contributed to 28% of the Group’s 9M FY2018 revenue.
- 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.
