Operating cash flow was negative and it still has $240m borrowings
...2020 was a tough year for TV/movie producer, mm2. Not so much for the films that they produced, but the acquisition of Cathay Cineplexes more than 2 years before Covid-19 struck dealt a heavy blow to the business.
Cinemas were not allowed to open for months and were only permitted to operate at 50% capacity during Phase 3 in Singapore. To make matters worse, cinemas are often the anchor tenants of expensive real estate in popular malls – rents have to be paid regardless of the ticket sales or a lack thereof.
The half-yearly results was telling. As of 30 Sep 2020, revenue fell by 83% and net loss ballooned to $26m from a profit of $13m in the same period of the previous year. This was mainly impacted by the cinema segment which brought in revenue of $87.9m during FY2020 and a mere $3.6m in the first half of FY2021. (about -96% drop!)
