MEEG Takes Centre Stage as Earnings Soar in Q3

• Bolstered by topline growth, Main Event Entertainment Group Limited (MEEG) reported net profit of J$47.13Mn for the third quarter ended July 31, 2025 (Q3 2025).
• Revenues climbed 43.6% year-over-year (YoY) to J$632.14Mn, driven by the success of a proprietary event that helped offset weaker performance in its core business line. In tandem with the revenue increase, direct costs rose 55.5%, pushing gross profit up 30.1% YoY to J$267.61Mn. However, the gross profit margin contracted to 42.3% from 46.7% in Q3 2024 as direct cost growth outpaced revenue gains.
• Operating expenses (Opex) grew 23.7%, led by a 15.0% rise in administrative and general expenses, as spending increased to support the scaling of new business initiatives. However, with revenue growth far outpacing the growth in Opex, earnings rebounded during the quarter.
• That said, despite a profitable Q3, year-to-date (9M 2025) earnings fell 25.2%, reflecting weak performance in the first half (down 47.0% YoY). Notably, 42.3% of the nine-month net profit was generated in Q3, which helped cushion earnings from the impact of its weak first half.
• Year-to-date revenue total $1.52Bn, representing a 8% $1.43Mn in the prior corresponding period, supported by modest gains from M-Style Décor and Multimedia services. However, revenue from the core Entertainment and Promotions segment remains below prior-year levels.
• The company has expressed plans to use its owned events as a key revenue growth driver. These shifts could allow MEEG to see some levels of recovery in coming quarters, particularly in light of the positive impact a proprietary event had on Q3 earnings.
• In spite of the year-to-date lag in earnings, MEEG has prioritised innovation through digital transformation as one of the company’s key strategic initiatives going forward. The company is set to invest in digital tools, equipment and platforms that will enhance customer engagement, streamline operations, and create cutting-edge entertainment experiences. These initiatives will likely enhance attendee engagement, offering interactive environments and personalised experiences, which are expected to drive event market growth.
• MEEG’s stock price has declined by 28.6% year-to-date, closing at $8.35 as at Wednesday. At this price, the stock is trading at a P/E ratio of 83.5x, which is above the Junior Market Sector average of 28.51x.

(Sources: Main Event Entertainment Group Ltd. Financial Statements & NCBCM Research)