Main Event reports nine-month profit of $108.1 million
Main Event Entertainment Group Limited (MEEG) on Friday (September 13) reported unaudited after-tax profit of $108.1 million for the nine-month period ended July 31, 2019, a two per cent increase when compared with the corresponding period last year.
Chairman Ian Blair in reporting to stockholders on the period under review indicated that revenues increased by 28 per cent to 1.4 billion, due to diversification in the company’s core income stream.
“The M Style experience, our presence in the west and the M Academy project have been material contributors to growth; $267.724 million in revenues and another $4.242 million in other income are attributable to these newer products and offerings,” Blair stated.
MStyle is the division created by the event management company that provides seating and equipment for weddings, conferences and birthdays, while M-Academy refers to the training arm of MEEG, which provides certification in marketing, events management and production.
Blair added that MEEG’s operating and administrative expenses for the period under review, increased by 25 per cent when compared with the corresponding period last year; these costs include depreciation charges, salaries and related costs, transportation expenses, property related costs and office expenses.
“Expenses for the current year to date also include a material provision of $22.035 million for the expected credit losses (ECL), in accordance with the provisions of financial reporting standard, IFRS 9; the ECL provision in the current quarter was $115.706 million,” Blair stated.
The International Financial Reporting Standards provides a common global language for business affairs so that company’s accounts are understandable and comparable across international boundaries.
Under IFRS 9, lifetime ECL is the expected present value of losses that arise if borrowers default on their obligations at some time during the life of the financial asset.
MEEG’s total asset increased by 22 per cent to $193.812 million for the year under review; non-current assets increased by $72.873 million, while current assets increased by $120.939 million.
