Main Event Entertainment Group Limited, a provider of stage and lighting for large events, reported a two-thirds decline in annual profit to $70.1 million from $207 million in the previous year.
It was a challenging year for the entertainment sector, said CEO Solomon Sharpe and Chairman Dr Ian Blair in a statement to shareholders. The sector experienced a downturn in marketing expenditure from major clients, along with fewer large-scale events. This was reflective of an economic slowdown in Jamaica, they indicated.
Main Event’s revenue also declined to $1.7 billion for year ending October 2024, down 11 per cent for the year.
“Despite a challenging financial year … 2025 promises to bring additional opportunities for growth, with leading economic agencies estimating a partial rebound of Jamaica’s economy from the declines of 2024,” Sharpe and Blair stated.
Official data showed that the economy grew by 0.2 per cent in the June quarter and contracted by 3.5 per cent in the September quarter. And inflation is just cooling after rising exponentially since the 2020 pandemic.
These factors have impacted company and consumer spending. The latest JCC Business and Consumer Confidence Indices released last October indicated that more than half of businesses and a quarter of consumers are in need of cash or a loan. In times of austerity, spending on entertainment and art tends to decline.
Gross profit at Main Event fell by three points, or 17 per cent, to $855.6 million, highlighting the impact of higher costs and reduced margins. The company maintained a gross margin of 50 per cent, compared to 53 per cent the previous year. To mitigate the downturn, Main Event focused on improving efficiencies, while trying to preserve its service reputation.
Despite the challenges, the company saw pockets of growth, particularly in its digital signage division, which posted a 16 per cent increase in revenue to $115.5 million. However, its mainstay, entertainment promotions, which accounts for over 60 per cent of revenue, declined by 15 per cent year-on-year.
Looking ahead, Main Event plans to strengthen cost management, while exploring new revenue opportunities.
“We remain optimistic about the potential rebound of key events in 2025,” said Blair, expressing confidence in the company’s resilience and market position.
“Despite a challenging financial year, we are committed to creating shared value for our shareholders and all stakeholders connected to our business,” the directors said.