Main Event to start investing in its own events as market softens

Main Event Entertainment Group Limited, MEEG, recorded a net loss for its April second quarter, which it blamed on the economic downturn.

“As a business closely tied to consumer activity and discretionary spending, MEEG’s performance is inevitably influenced by prevailing economic conditions,” said Main Event.

“In times of reduced disposable income, demand for entertainment, events, and promotional services often comes under pressure. This context has framed many of the challenges and opportunities we faced during the quarter.”

Main Event made a loss of $9.3 million for the February-April quarter, compared to net profit of $20 million a year earlier. Over six months ending April, profit totalled $64 million, having fallen by nearly half from $120 million in the comparative 2024 period.

Revenues for the quarter fell to $306.37 million, down 27 per cent year-over-year, reflecting continued softness in core event categories and the absence of several high-value projects that contributed materially a year earlier.

“This contraction in revenue is primarily attributable to continued softness in core event categories, most notably entertainment and promotions and M-Style Decor,” the company said in its report to shareholders.

The most significant development in the quarter was MEEG’s push into hosting proprietary events, part of a broader diversification strategy aimed at reducing revenue volatility and strengthening brand equity.

“As part of its long-term strategy to reduce revenue volatility and deepen brand equity, the company has begun investing in its proprietary events,” Main Event said, with expectations that the returns on these initiatives will materialise in subsequent quarters.

Main Event didn’t specify whether it would cater to the higher end of the market or more budget-conscious partygoers.

Cash and bank balances stood at $141.7 million at the end of the reporting period, while short-term deposits increased to $252.6 million, reflecting a solid liquidity position. Despite the quarterly loss, total assets held steady at $1.2 billion, nearly unchanged from the year prior. Shareholder equity improved to $946.8 million, up two per cent from a year earlier, buoyed by retained earnings growth in the first half of the financial year.

Main Event was listed on the junior arm of the Jamaica Stock Exchange in February 2017. The listing allowed it 10 years of tax breaks, the latter half of which allows for a 50 per cent waiver. The company has two more years until it begins paying the full income tax rate.

steven.jackson@gleanerjm.com