SINGAPORE (Aug 14): mm2 Asia reported 1Q19 earnings increased by 13.2% to $7.25 million, compared to $6.40 million in 1Q18.

This came on the back of the group’s revenue almost doubling to $49.0 million from $24.6 million in the previous year.

This was mainly contributed by the group’s business assets from Lotus Fivestar Cinemas in Malaysia and a newly acquired subsidiary, Cathay Cineplexes in 3Q18. The increase in revenue was also contributed by the group’s core business and post-production business.

As cost of sales increased by 73.4% y-o-y to $16.1 million, gross profit for 1Q19 came in at $32.9 million, 114.4% higher than $15.4 million last year.

Administrative expenses significantly increased to $18.9 million from $5.64 million, while finance expenses also saw a significant jump to $3.22 million from $0.16 million a year ago.

As at June 30, the group’s cash and cash equivalents stood at $54.4 million.

Melvin Ang, executive chairman of mm2 says, “Beyond the Chinese market, which offers huge growth potential, the group is also seeking opportunities of regional film co-productions; In May 2018, mm2 formed a strategic slate partnership to co-finance 6 Southeast Asian films over the next 3 years.”

Chang Long Jong, CEO of mm2 adds, “The Group is also in the midst of preparing the subsidiary [Vividthree Production] for its proposed spin-off and listing on the SGX Catalist Board. Similar to the listing of UnUsUaL, the proposed spin-off and listing of Vividthree is about creating the best operating environment for and sharpening the focus of the management of Vividthree. Moreover, this exercise allows Vividthree to raise the funds required for its new growth trajectories in digital IP asset development without relying on the Group’s financing; creating real value for the shareholders.”

Shares in mm2 closed at 42 cents on Tuesday.