KLE Continues to Report YoY Losses

• Though 10.1% lower than the corresponding prior-year period, the KLE Group Ltd. continued to report losses for the nine months ended September 2021 ($57.95Mn). The outturn reflects a reduction in expenses (17.5% or $20.70Mn) driven by lower bank service charges, rent and licenses, and permits and a 9.3% increase in the company’s revenue. The revenue growth came on the back of higher income from the food, bar, merchandise, and rental segments of the company. 
• Although the company reported a decline in losses, there was also a decline in other operating income (-71.8%), increase cost of sales (+9.8%), and finance and depreciation cost (+74.7%). Currently, there are still restrictions on the entertainment sector in Jamaica. However, given the recently relaxed curfew hours, KLE should continue to see an improvement in its revenue for the final quarter of the year. 
• KLE’s stock price has appreciated by 71.3% since the start of the year and closed Tuesday’s trading session at $1.97 per share.

(Sources: KLE Financials & NCBCM Research)