Mon | Jun 26, 2017

Main Event loses ground after flat results

Published:Friday | June 9, 2017 | 6:00 AMSteven Jackson
Solomon Sharpe, CEO of Main Event Entertainment Group

 

Main Event Entertainment Group's shares regained some lost ground in early trading on Thursday after the release of financial results this week showing reduced earnings for last year, but the uptick in the stock price was short-lived.

However, the shares are still trading at more than three times their listing price.

The promotion company listed in February and investors are awaiting the results of its first and second quarters for January and April, respectively.

Main Event shares, which trade under the symbol MEEG, traded as high as $6.90 at one point on Thursday, but by the close of the day, it lost two cents to close at $6.54. The previous day, MEEG shares dipped 6.15 per cent.

Main Event earned $56.5 million of net profit from $1.13 billion of revenues for the year ending October 2016. Revenue rose nearly 10 per cent, but profit fell 5.8 per cent due to rising administrative expenses and depreciation charges.

Neither CEO Solomon Sharpe nor chief operating officer Richard Bair returned calls for comment.

Since its listing on the junior stock exchange at $2 per share, MEEG's price has climbed as high as $8, or 300 per cent, but is now hovering around $6.50.

Main Event, incorporated in 2004 by Sharpe and Bair, has been described as Jamaica's largest digital signage and structured-event management company. It raised $120 million in its initial public offer.

Listed companies are usually required to file quarterly financial reports within 45 days of the end of the quarter. However, for a new market entrant, like Main Event, that timetable "is anchored on when the company lists rather than retroactively," said JSE Managing Director Marlene Street Forrest.

The company's April results would be due by around mid-month.

steven.jackson@gleanerjm.com