mm2 Asia says voluntary liquidation of Cathay Cineplexes unlikely to affect its core businesses

Entertainment company mm2 Asia on Sept 3 said the voluntary liquidation of Cathay Cineplexes is not expected to adversely impact its core businesses or continuing operations.

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Instead, liquidating the struggling cinema chain may improve the group's overall cash flow and profitability, given that Cathay has been cash-flow negative and loss-making since the Covid-19 pandemic, said mm2.

This was in response to queries raised by the Singapore Exchange regarding the creditors' voluntary liquidation of Cathay, which was announced earlier this week.

Shortly after, the cinema chain which owes money to the landlords of several of its outlets ceased operations.

In a bourse filing on Sept 3, mm2 explained that Cathay's weak financial performance was already consolidated and publicly disclosed.

Its core content business continued to perform strongly, contributing $109.8 million in revenue in financial year 2025, the group noted.

Earnings before interest, taxes, depreciation and amortisation came in at $24.7 million, supported by diversified demand across Singapore, China, Taiwan, Hong Kong and Malaysia.