mm2 Asia reports 52% rise in 3Q earnings to $6.4 mil; issues $48 mil debt to finance cinema ops

mm2 Asia reports 52% rise in 3Q earnings to $6.4 mil; issues $48 mil debt to finance cinema ops

By: 
PC Lee
07/02/18, 10:27 pm

SINGAPORE (Feb 7): mm2 Asia, the film producer and distributor, reported 3Q earnings rose 52% to $6.4 million from $4.2 million a year ago.

Revenue in 3Q increased nearly tripled to $52.4 million from $18.0 million mainly due to contribution from recent acquisitions of business assets from Lotus Fivestar Cinema (M) and a subsidiary corporation, Cathay Cineplexes as well as its core business and event production and concert promotion business from UnUsUaL.

Cost of sales in 3Q increased by $19.1 million to $28.2 million largely due to higher production level in its core business, event production and concert promotion business and its recent acquisitions of cinema business.

Gross profit nearly tripled to $24.2 million from $8.9 million.

mm2 Asia says the majority of the group’s revenue still comes from its core business of producing, distributing and placing products for movies and TV/online content.

With the completion of the acquisition of cinema business from Cathay Cineplexes last  November, the group is officially the second largest cinema operator in Singapore.

Looking ahead, the group will focus on the creation, development and exploitation of digital IP assets through Vividthree Productions which is being readied for its Catalist listing.

Meanwhile, UnUsUaL continues its expansion out of Singapore and Malaysia, and into North Asia.

See: UnUsUaL's 3Q earnings double to $2.5 mil on higher revenue

In a separate filing, mm2 Asia announced its subsidiary MM Connect has issued nearly $48 million worth of unsecured subordinated convertible notes and bonds, as part of the group’s financing plan for the group’s planned expansion of its cinema operations.

Shares in mm2 Asia closed 1 cent higher at 50 cents.

SGX stock falls 2% before midday break on news of potential injunction

SINGAPORE (May 22): Singapore Exchange (SGX) is facing a potential interim injunction on the India equity derivative products it intends to launch in June this year, but maintains that it nonetheless will continue to list the products as planned. To recap, SGX earlier announced its intention to launch three derivative products in June 2018 – SGX India futures, SGX India options and SGX India bank futures – to succeed the derivatives it used to offer on India’s benchmark Nifty 50. See: SGX shares opens near 7% lower on Nifty futures exit news See: Singapore turns India's Nifty in....
Read More >>

Former Malaysian PM Najib questioned by anti-graft agency

PUTRAJAYA (May 22): Former Malaysian Prime Minister Najib Razak was being questioned Tuesday by anti-corruption police about a graft scandal that could lead to criminal charges against him. He was summoned nearly two weeks after the defeat of his long-ruling coalition in national elections, a loss partly due to public anger over alleged corruption at the 1Malaysia Development Berhad (1MDB), the state investment fund that Najib set up. US investigators say Najib's associates stole and laundered US$4.5 billion ($6 billion) from the fund, some of which landed in Najib's bank account. Swa....
Read More >>

China likely to ease up slightly on financial tightening amid credit slowdown: Oxford Economics

SINGAPORE (May 22): China is likely to shift away from tighter financial policies amid a stronger-than-expected credit slowdown since December last year, even as GDP growth remains a key policy objective, according to research firm Oxford Economics. “The government has put ‘boosting domestic demand’ back on the policy agenda while de-emphasising the task of ‘deleveraging’, fuelling speculation that China is shifting away from tighter financial policies,” says lead economist Tianjie He in a report on Tuesday. However, He highlights that policymakers are not expected to make dr....
Read More >>