Main Event Entertainment Group Limited (MEEG) indicated that in the first quarter ended January 31, 2021, M-Style, the business segment that focuses on decor, and its digital signage unit continued to make contributions to company revenues, although at reduced levels.
In his remarks on the first-quarter results, CEO Solomon Sharpe said the company’s footprint shrunk, in the context of COVID-19, as revenues continue to deviate significantly from historical levels.
However, he noted that the company’s performance this quarter shows promise with improving revenues and net profit of JM$8.07 million — after three preceding quarters of net losses.
Direct expenses, as well as administrative and other costs, were about one-third less than in the corresponding period a year ago.
During the first quarter, Sharpe said, the team continued to work closely with key customers to create opportunities in the ongoing challenging circumstances.
“We will continue to strive for improvements in each quarter’s results despite ongoing business disruption from the pandemic”— Solomon Sharpe, CEO, Main Event Entertainment Group
Notwithstanding, revenues declined 71 per cent to JM$175.84 million in this first quarter of 2021, down from JM$598.142 million.
The company’s M-Style product together with its western operations contributed JM$21.9 million or 12 per cent of revenues this quarter, compared to JM$110.19 or 18 per cent in the corresponding period in 2020.
Sharpe explained that the 80 per cent decline in year-over-year revenue is indicative of the impact of the nightly curfews and government regulations on public gatherings on MEEG’s core business.
However, he noted, that the decline this quarter was notably not as pronounced as it was in the third and fourth quarters of the 2020 fiscal year, at which time the company was down 87 per cent and 77 per cent respectively.
“We will continue to strive for improvements in each quarter’s results despite ongoing business disruption from the pandemic,” he concluded.
The company ended the period with total assets of JM$850 million, down from JM$1.05 billion at January 31, 2020.
Cash and cash equivalents improved to JM$162 million when compared to JM$100.78 million at January 2020.