SINGAPORE: Cathay Cineplexes owner mm2 Asia saw its group net loss surge to S$122.4 million (US$95.4 million) in the 2025 fiscal year, financial results showed on Thursday (Aug 28), a substantial increase from its S$1.9 million loss in the year before.
Total revenue for the fiscal year ending Mar 31 fell to S$165.1 million in 2025, a 13.9 per cent year-on-year fall from its revenue of S$191.8 million in 2024.
The fall in revenue came despite an increase in revenue in the second half of 2025.
Total revenue for the last six months to Mar 31 was reported at S$79.7 million, a 21 per cent increase from the S$65.9 million in the same period a year before.
However, mm2 Asia experienced a net loss of S$118.4 million in the second half of 2025, a nearly 10-fold increase compared with the S$12.8 million loss in the same period the previous year.
The share of losses of associated companies for the full 2025 fiscal year was S$82.8 million, up from S$11.9 million in 2024.
"The second half of FY2025 was exceptionally challenging, especially with the legal and financial issues from our cinema business," said mm2 Asia executive chairman Melvin Ang.
"We recognise our cinema landlords as valued partners in our business ecosystem. However, the road to recovery has been longer than anyone expected (and) we can understand their position.
"We are still actively engaging with all our creditors to negotiate fair and amiable solutions to ensure the group's long-term viability," he added.
In its outlook, mm2 Asia said its cinema segment faces "pronounced challenges", with attendance not yet fully rebounding following COVID-19 disruptions, competition from streaming platforms and tight operating margins.
"This is compounded by rising operational costs and evolving audience behaviours, making sustained recovery in the cinema business an uphill battle and prompting consideration of restructuring, mergers or divestiture," it said.
For its concert and live event operations, the firm reflected cautious optimism.
"While live entertainment has returned to pre-pandemic levels in many markets, revenue in this segment fluctuates with event cycles, scheduling, and consumer sentiment, suggesting that growth will remain uneven in the near term," mm2 Asia said.
The company is also cautiously optimistic about digital content, as despite ongoing investments and partnerships bringing new opportunities in digital media, online streaming and branded content, "competitive intensity and rapid innovation require agile adaptation to fast-changing technologies and audience demands", it said.
Mainboard-listed mm2 Asia had been beset by financial difficulties as the cinema industry, hurt by the COVID-19 pandemic, struggles with the rise of streaming services and mounting costs.
Six Cathay Cineplexes cinemas have closed in around three years, leaving four outlets still in operation, with mm2 Asia owing its landlords millions in rent.
Independent cinema operator The Projector earlier this month announced its sudden exit from the market in a complete reversal from its previous plans to resume screenings at its Golden Mile Tower outlet.
WE Cinemas, formerly known as Eng Wah Cinemas, and Filmgarde Cineplexes also threw in the towel over the past year.
Mr Ang said on Thursday that mm2 Asia is committed to revitalising its presence in the industry.
"Our strategy is focused on managing creditor relationships, growing our core business, expanding into new content-driven ventures and divesting non-core businesses," he said.
"By leveraging our strengths and maintaining this disciplined focus, we will build a stronger and more resilient company."
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Total revenue for the fiscal year ending Mar 31 fell to S$165.1 million in 2025, a 13.9 per cent year-on-year fall from its revenue of S$191.8 million in 2024.
The fall in revenue came despite an increase in revenue in the second half of 2025.
Total revenue for the last six months to Mar 31 was reported at S$79.7 million, a 21 per cent increase from the S$65.9 million in the same period a year before.
However, mm2 Asia experienced a net loss of S$118.4 million in the second half of 2025, a nearly 10-fold increase compared with the S$12.8 million loss in the same period the previous year.
The share of losses of associated companies for the full 2025 fiscal year was S$82.8 million, up from S$11.9 million in 2024.
"The second half of FY2025 was exceptionally challenging, especially with the legal and financial issues from our cinema business," said mm2 Asia executive chairman Melvin Ang.
"We recognise our cinema landlords as valued partners in our business ecosystem. However, the road to recovery has been longer than anyone expected (and) we can understand their position.
"We are still actively engaging with all our creditors to negotiate fair and amiable solutions to ensure the group's long-term viability," he added.
"UPHILL BATTLE"
In its outlook, mm2 Asia said its cinema segment faces "pronounced challenges", with attendance not yet fully rebounding following COVID-19 disruptions, competition from streaming platforms and tight operating margins.
"This is compounded by rising operational costs and evolving audience behaviours, making sustained recovery in the cinema business an uphill battle and prompting consideration of restructuring, mergers or divestiture," it said.
For its concert and live event operations, the firm reflected cautious optimism.
"While live entertainment has returned to pre-pandemic levels in many markets, revenue in this segment fluctuates with event cycles, scheduling, and consumer sentiment, suggesting that growth will remain uneven in the near term," mm2 Asia said.
The company is also cautiously optimistic about digital content, as despite ongoing investments and partnerships bringing new opportunities in digital media, online streaming and branded content, "competitive intensity and rapid innovation require agile adaptation to fast-changing technologies and audience demands", it said.
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Mainboard-listed mm2 Asia had been beset by financial difficulties as the cinema industry, hurt by the COVID-19 pandemic, struggles with the rise of streaming services and mounting costs.
Six Cathay Cineplexes cinemas have closed in around three years, leaving four outlets still in operation, with mm2 Asia owing its landlords millions in rent.
Independent cinema operator The Projector earlier this month announced its sudden exit from the market in a complete reversal from its previous plans to resume screenings at its Golden Mile Tower outlet.
WE Cinemas, formerly known as Eng Wah Cinemas, and Filmgarde Cineplexes also threw in the towel over the past year.
Mr Ang said on Thursday that mm2 Asia is committed to revitalising its presence in the industry.
"Our strategy is focused on managing creditor relationships, growing our core business, expanding into new content-driven ventures and divesting non-core businesses," he said.
"By leveraging our strengths and maintaining this disciplined focus, we will build a stronger and more resilient company."
Continue reading...