SINGAPORE – The owner of Cathay Cineplexes, mm2 Asia, has reported a staggering net loss of $101.3 million for the second half of its fiscal year, a drastic increase from the $8.7 million loss recorded the same time last year.

Despite seeing a 21% surge in revenue—climbing from $65.9 million to $79.7 million over six months—the company’s financial health has been overshadowed by crippling losses attributed to its stake in associated companies.

The company revealed that these losses skyrocketed to a shocking $75 million for the half-year, compared to just $7.2 million the previous year. Overall, mm2 Asia faced losses from associated companies amounting to $82.8 million for the full year, a huge increase from the $11.9 million loss the year before.

The downturn was particularly driven by the write-off of its cinema business, mm Connect, which has left the company's future in the lurch.

Executive chairman Melvin Ang expressed the challenges faced: “The second half of FY2025 was exceptionally challenging, particularly due to ongoing legal and financial issues surrounding our cinema operations. We appreciate our cinema landlords and understand the prolonged recovery period.”

As the company navigates this tumultuous financial landscape, it is exploring multiple strategies to tackle its monetary woes, including potentially winding down the cinema chain entirely. Recent reports indicate that six Cathay Cineplexes locations have closed in the last three years, with only four remaining operational.

In total, mm2 Asia reported a net loss of $105.2 million for the full year, a significant deterioration from the $5.7 million loss incurred last year. Overall revenue also fell to $165.1 million, a 13.9% decline from the previous year.

Looking ahead, the company is bracing for tough times as the cinema industry continues to grapple with post-pandemic recovery challenges. Attendance hasn’t fully bounced back, and rising competition from streaming services coupled with high operational costs is putting immense pressure on profitability.

On a brighter note, while concert and live events show signs of recovery, aligned with pre-pandemic levels in many markets, the fluctuations based on consumer sentiment and event planning suggest inconsistent growth. Meanwhile, the movie production segment remains a silver lining for mm2 Asia, buoyed by a strong demand for Asian content.

In a bid to adapt and survive, mm2 Asia has laid out a strategic roadmap focusing on embracing cutting-edge technologies such as generative artificial intelligence, exploring high-potential areas like interactive media, and restructuring non-core divisions to unlock much-needed capital.