SINGAPORE — The owner of Cathay Cineplexes, mm2 Asia, has reported a staggering group net loss of S$122.4 million (about US$95.4 million) for the financial year ended March 31, 2025, compared to a much smaller S$1.9 million loss a year earlier, according to a report by Singapore's CNA.
Annual revenue slipped 13.9 per cent to S$165.1 million, down from S$191.8 million in the previous financial year. Still, CNA reported that the company registered a rebound in the second half of FY2025, with revenue climbing 21 per cent to S$79.7 million, up from S$65.9 million in the same period a year ago.
However, the recovery in turnover was not enough to offset mounting costs. The group’s net loss in the second half alone swelled to S$118.4 million, almost ten times larger than the S$12.8 million loss recorded in the corresponding period of FY2024.
Losses from associated companies also deepened, rising sharply to S$82.8 million from S$11.9 million the year before.
mm2 Asia’s executive chairman, Melvin Ang, described the second half of FY2025 as “exceptionally challenging”, particularly due to the legal and financial issues affecting its cinema business.
He said the group is working with creditors to find “fair and amiable solutions” that would safeguard its long-term viability.
According to CNA, the company acknowledged that its cinema segment remains under intense pressure.
Audience numbers have yet to fully recover after the pandemic, while streaming services continue to erode box-office sales.
Rising operating costs and thin margins have also made a sustainable recovery “an uphill battle,” pushing the group to consider restructuring, mergers, or even divestment of assets.
On a more positive note, mm2 Asia said its concert and live event operations have returned to pre-pandemic activity levels, though performance still depends heavily on scheduling and consumer demand.
The group also expressed confidence in its digital content business, but stressed that success will require agility to keep up with technological change and shifting audience preferences.
