MM2 Asia's H1 net profit skyrockets 97% to $8.9m

Revenue surged 175.6% to $35m.

MM2 Asia’s HY2017 revenue increased by 175.6% to S$35.0m from S$12.7m for the half year ended 30 September 2015 (HY2016).

This increase was due primarily to the additional revenue generated from a newly acquired subsidiary, the UnUsUaL Pte Ltd. (UnUsUaL), as well as additional revenue generated from its cinema operations business.

UnUsUaL involved in event and concert promotion, has contributed S$5.2m in revenue for HY2017, while the cinema operations business added S$6.1m in revenue.

The Group’s core business also saw a 104.7% increase in revenue from S$10.6m in HY2016 to S$21.7m in HY2017. Consequently, the Group’s HY2017 gross profit increased by 135.7% from S$8.4m in HY2016 to S$19.8m in HY2017.

The Group had an increase of 186.7% in general and administrative expenses, which went from S$3.0m in HY2016 to S$8.6m in HY2017.

The increase was due to higher employee compensation costs as a result of higher headcount resulting from the Group’s expansion as well as the acquisition of the cinema business in the period under review.

There was also an increase in rental expenses of S$1.1m, mainly due to the new cinema operations business.

Finance costs also increased to S$313,000 in HY2017, mainly as a result of additional interest expenses for new exchangeable notes and finance costs from additional bank borrowings and finance lease liabilities taken up during the period.

As a result, the net profit for HY2017 increased by 97.8% to S$8.9m from S$4.5m inHY2016. This translates into a net profit attributable to shareholders of S$7.8m for HY2017.