MM2 Asia files notice of 3 straight years of losses

SINGAPORE – Media and entertainment company MM2 Asia has given notice that it has recorded three consecutive years of losses.

Based on audited full-year consolidated accounts, the mainboard-listed company recorded pre-tax losses for the last three consecutive financial years, it said in a bourse filing late on Nov 24.

However, it will not be placed on the Singapore Exchange (SGX) watch list as its six-month average daily market capitalisation was $105.4 million as at Nov 15.

According to the rules of the SGX listing manual, mainboard-listed companies will be placed on the watch list if they record pre-tax losses for the latest three consecutive and complete financial years, and if they fail to maintain an average daily market cap of at least $40 million over the last six months.

Watch-listed companies must take measures to satisfy these financial requirements within 36 months of the date on which they are placed on the list, otherwise they will be delisted from SGX or have their trading suspended with a view to delisting.

MM2 Asia released its unaudited results for the first-half of financial year (FY) 2024 on Nov 14, 2023.

For the six months that ended on Sept 30, 2023, its net profit rose to $10.8 million from a loss of $6.2 million in the year-ago period and revenue rose to $128.7 million from $52.3 million.

The company attributed this to recovery of its businesses from the Covid-19 pandemic.

Its content business (films and dramas) revenue rose 36 per cent to $15.5 million, while its digital entertainment business revenue rose 55.6 per cent to $2.8 million.

Its concert and event business revenue “increased significantly” to $66.4 million from $6.3 million.

For its full financial year that ended on March 31, 2023, the company reported a net loss of $122.5 million, following losses of $42.1 million from FY2022.

MM2 Asia said it will make an announcement should it be notified by SGX that it will be placed on the watch list. SGX conducts reviews every quarter to identify companies to be watch-listed. THE BUSINESS TIMES