THE ANALYSTS: Main Event is back!

Main Event Entertainment Group (MEEG) is on track to beat its pre-pandemic financial performance following the reopening of Jamaica’s entertainment industry.

For the nine months ending July 31, Main Event recorded almost $104 million in net profit, a stunning 1133% increase compared to the previous year.

Speaking on Taking Stock with Kalilah Reynolds, Investment, Research and Quantitative Analyst at JMMB, Arlon Morrison said that MEEG’s recovery was expected after the lifting of many COVID-19 restrictions.

Main Event was severely impacted by the COVID-19 pandemic as its core business is event management and production.

Morrison noted that the company’s first-quarter results would have been affected by the Omicron variant of COVID, which resulted in the country enforcing tighter restrictions.

However, the analyst said that MEEG’s strong second and third quarter shows that the company spent its down period during the pandemic readying itself for the eventual reopening of the entertainment industry.

For the nine months ending July, the company recorded over $1 billion in revenues. This puts it on target to beat its 2019 full-year performance.

“They’ve also actually reported the strongest quarterly revenues in the company’s history as well as the best profit since listing on the Jamaica Stock Exchange,” Morrison said.

For the third quarter, the company recorded $602 million in revenues and net profits of $124 million.

The market reacted to the company’s report with the share price climbing from the $5-$6 range to $8.79 on Wednesday, September 21.

“The only downside to Main Event is that it is very tightly held by insiders,” Morrison said, noting that the top three shareholders own approximately 90% of the company.

“So, you’re looking at a daily average volume over the last year of around 45,000 shares. So, it’s not the most liquid stock which is unfortunate,” he said.

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Sashell Williams2024-09-03T21:40:31-05:00