Main Event expects more uncertainty amid continued restrictions

MAIN Event Entertainment Group Limited (MEEG) said despite some growth in earnings at the end of its third-quarter period, the end of July reveals that the outlook for its business continues to be uncertain amid ongoing restrictions on movement and key sectors due to the novel coronavirus pandemic.

“Restrictions due to the pandemic have now extended through to the final quarter of two fiscal years. Looking forward, we are expecting more uncertainty and volatility in our business, with new variants of the COVID-19 virus and with renewed restrictions on movement within our region.

“While we are hopeful for a successful containment of these new variants worldwide and pleased to see progress and momentum in Jamaica’s vaccination efforts, we accept that the process to recovery will not be a quick fix,” the company’s directors said in its last quarterly report to shareholders.

Solomon Sharpe, CEO, Main Event Entertainment Group (Photo: Jamaica Observer)

Up to the nine-month period in July, revenues for the company totalled $572.9 million following a strong quarterly performance by the company which earned $243.3 million. Substantial income from digital signage services was cited as a major driver of revenues for the quarter.

The entity, which has been plagued by some losses since the pandemic and the closure of the entertainment sector, during the reported period also turned net profits of JM$28.6 million for the nine months and JM$9.1 million for the quarter, an improvement over the similar periods in the year prior.

A brief reopening of the entertainment sector during the quarter seems to have also benefited the company, which makes a portion of its earnings from the rental of entertainment equipment, after it reported a 13 per cent increase in revenues from entertainment and promotions in the quarter.

“We experienced only moderate shifts following the brief ease in restrictions for the entertainment industry in July 2021. Revenues earned from our core business [however] continue to lag significantly behind pre-COVID levels,” the company further stated in its report.

MEEG said it was now more focused on its business continuity and the reduction of debt as it continues to take advantage of scarce opportunities.

“The company settled over $17 million in debt finance lease obligations and interest charges during this third quarter of 2021,” the report noted.