Local media entertainment company mm2 Asia, who owns Cathay Cineplexes, reported more financial troubles, as its net losses increased in the second half of its 2025 fiscal year to $101.3 million.

This is a 10-fold hike from the $8.7 million seen in the previous corresponding period, reported the Business Times from financial results released on Thursday (Aug 28).

Mm2 Asia also saw total revenue for the fiscal year ending March 31fell to $165.1 million in 2025, down by 13.9 per cent from $191.8 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.

Mm2 Asia’s fortunes mirrors the financial difficulties that the cinema industry has been experiencing due to the Covid-19 pandemic, mounting costs and competition from streaming services.

Six Cathay Cineplexes cinemas have closed in the last three years, with the remaining four still in operation, with mm2 Asia owing landlords millions of dollars. 

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chingshijie@asiaone.com