SINGAPORE (April 10): Spackman Entertainment Group on Monday issued a positive profit guidance for the first quarter ended March 31.

Based on a preliminary review of its first quarter results, Spackman says it expects to report a net profit for 1Q17, reversing out of a net loss reported a year ago.

The turnaround and results improvement is mainly attributed to the revenue and earnings recognition from the film, “Master”. The film was produced by Spackman’s wholly-owned subsidiary, Zip Cinema Co.

Spackman also received production revenue from its upcoming movie, “Golden Slumber”.

In addition, Spackman had disposed of its loss-making subsidiary, Opus Pictures, in August.

“Without this loss-making entity, the Group expects to reduce its fixed overheads and operating expenses significantly,” Spackman said in a filing to SGX.

Shares of Spackman closed 0.1 cent lower at 17.6 cents on Monday.