Main Event profit falters but revenue resilient

Main Event Entertain-ment Group Limited reported a 27 per cent decline in net profit for the first quarter ending January 2025, falling to $73.7 million from $100.3 million, primarily due to higher expenses.

“This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery,” the company reported to shareholders.

Despite the drop in profit, revenue for the quarter rose by 3.0 per cent year-on-year to $585 million. The events promoter attributed this growth to strong contributions from a previously underperforming segment, which reflects the success of targeted expansion efforts, though it did not disclose the specific segment. However, overall revenues remain below historical peaks as the company continues to recalibrate its operations, focusing on broadening service offerings.

During the year, Main Event reduced its loans to $7.4 million, down from $36 million a year earlier. This reduction contrasts with broader industry trends.

Loans to the entertainment sector increased by 60 per cent to $2.75 billion as of December, according to Bank of Jamaica data, signalling growing investments in attractions and events. However, consumer disposable income appears less resilient, with BOJ data showing unserviced consumer loans, that is, those delinquent for 31 to 89 days, reaching $29 billion in December, up 12 per cent year-on-year.

Despite the challenges, Main Event remains optimistic about its growth prospects. “The company aims to enhance operational efficiencies, deepen market penetration, and leverage owned-events as a key revenue driver,” it stated.

Increased finance costs related to leases further strained profitability during the quarter, contributing to the decline in net profit. Earnings per share also dropped to $0.25, down from $0.33 a year earlier.

Total assets grew by 6.4 per cent to $1.34 billion, driven largely by a 53 per cent rise in receivables due to increased event executions, which resulted in higher customer balances during the quarter. Shareholders’ capital also rose by 5.0 per cent to $956.17 million.

Main Event is headed by CEO Solomon Sharpe and chaired by Dr Ian Blair.

steven.jackson@gleanerjm.com