“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.
