After recording three consecutive quarterly reports of losses, Main Event Entertainment Group (MEEG) generated a net profit of $8.1 million for its first quarter against the backdrop of severely reduced operations as seen with revenue dropping by 71 per cent to $175.8 million.

The company, which specialises in the provision of event management and a myriad of other services, has been unable to truly operate due to the coronavirus pandemic sending most events into the digital space. Despite this restriction, MEEG has continued to do events which are possibly hybrid, live or pre-recorded. Its M-Style product along with its western operations contributed $21.9 million or 12 per cent to the first quarter revenue.

Total expenses declined by 41 per cent to $101.4 million with administrative and selling expenses down by 61 per cent to $64.6 million. MEEG attributed this sharp decline due to the reduction in staff costs and suspension of discretionary expenditure.

Operating profit closed out the period at $9.4 million which is far from the record $75.7 million set in the first quarter of 2020. Lower finance costs and a tax credit resulted in MEEG’s earning per share rounding out at $0.03 versus $0.23.

Total assets declined by 18 per cent to $860.5 million as the company’s receivables balance closed out the period at $77.4 million. However, this was a relative increase compared to the $854.1 million at the end of its financial year in October. MEEG’s cash balance stood at $164 million which is an all time high as the company builds out its cash reserves to sustain itself in uncertain times. Total liabilities and equity were $318.8 million and $541.7 million, respectively.

In closing out the report, board member Dr Ian Blair and Chief Executive Officer Solomon Sharpe stated, “We have now been operating at significantly reduced capacity for close to a year; since late in the second quarter of fiscal year 2020. The uncertainties surrounding the pandemic continues to be a challenge, but our financial priorities remain unchanged. Our actions in the short term will continue to focus on the health and well-being of our stakeholders, while also ensuring the health of our business.”