With smaller events, revenue shrinks for Main Event Entertainment

 



Main Event Entertainment Group Limited for the year ended October 31, 2024, reported revenue of $1.71 billion which was 11 per cent lower than the amount recorded in 2023.

Revenue fell due to a decline in events with smaller scoped project executions, according to management. Main event organizes, promotes and manages events including reggae festivals, food festivals and other such occasions.

Net income for the year was $70.092 million, a decline of $137.319 million or 66 per cent when compared to 2023.

Directors explained “The reduction in net income is primarily a result of lower gross profit margins, increases in cost categories consistent with the company’s growth strategy and the inability to offset the decline in gross profits with lower administrative and general expenses.”

They said that the company’s inability to lower these expenses was due to fixed administrative expenses and the effects of rising costs on other expense categories.

CEO Solomon Sharpe stated, “ Improving our cost management strategies will be a key focus in the 2025 financial year.”

Sharpe in the preamble to the company’s yearend report says future strategy will centre around “seeking new opportunities, securing new and maintaining existing clients while controlling costs during the execution of our engagements are key drivers of success for the company.”

Despite the overall decline in revenue however, Digital Signage recorded $115.455 million in revenue, an increase of $15.811 million or 16 per cent over the corresponding period.

Management noted, “The gross profit realized in 2024 reflects the impact of a very competitive market coupled with a decline in macro-economic conditions, with Jamaica’s economy projected to contract by the end of 2024. The company has maintained prices over several years and has been focusing on improving efficiencies to offset the impact of rising costs, while ensuring delivery of a consistently high output.”

The company’s asset base grew by $40.611 million or 4 per cent to $1,196.568 million as at 31 October 2024.

Receivables increased by $22.426 million or 9 per cent to $259.988 million due to increases in prepaid event-related expenses and mobilization costs related to joint ventures and owned events to be executed in the 2025 financial year.

The increases in current assets were offset by a reduction in cash and cash equivalents of $63.132 million or 28 per cent which was due in part to the payment of a dividend of $0.12 per share ($36.001 million) and investment of $106.430 million in property, plant and equipment.

Total liabilities were $314.069 million as at 31 October 2024; an increase of $6.520 million or 2 per cent.


Photo credit: Solomon Sharpe by NCBFG

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