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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.
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.