Saturday 19 September, 2020

Main Event's third quarter revenues slip 87 per cent

Main Event Entertainment Group Limited saw its revenues slip by 87 per cent for the quarter ending July 31, 2020, down from $468.61 million in the similar period last year. 

Management said the results for the quarter and for the nine months ended July 31, 2020, have been significantly impacted by the on-going coronavirus (COVID-19) pandemic.

Year to date, nine-month revenue is $ 944.58 million compared to $ 1.364.442 billion in July 2019, down 31 per cent.

In October 2019, the company ended the year with $1.799 billion in revenues.

Main Event offers turnkey solutions for event management, digital signage and promotions services in Jamaica and the Caribbean. 

Principals Richard Bair and Solomon Sharpe launched in 2004, tapping the need for brand experiences. In 2006 associate company I-Print Digital was created and later MStyle.

The company employed around 200 persons in 2019 operating from offices on Lady Musgrave Road in Kingston with a warehouse in Newport West.

It has cut costs to preserve liquidity and is operating with a “trimmed workforce.”

Management expects current conditions to continue for the remainder of the year.

“We have been challenged to weather a very unfavourable environment for our industry, with government-imposed social distancing protocols and the shutdown of outdoor events,” management said in notes attached to the financial statements. 

“As a result, both revenues and profitability have retracted significantly. Year to date revenues and gross margins are down 31 per cent and 30 per cent respectively, but our profits have been substantially reduced in this pandemic-marred quarter.”

Operating loss for the July quarter was $42.78 million compared to $23.16 million in operating income last year and net loss for the quarter was $45.54 million compared to net income of $14.73 million in 2019.

Earnings per Share (EPS) was 3 cents 36 cents, down 92 per cent.

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