Mm2 Asia Ltd Getting Busy With Future Growth Engines

Mm2 Asia Ltd (SGX: 1B0) has been very aggressive in pursuing growth opportunities since its listing. The production company is now moving from a local production house to an international producer and cinema operator.

Here are just some of the growth plans of mm2 Asia at the moment.

Mm2 Asia has entered into an acquisition to buy an additional 13 cinemas chain from a local operator in Malaysia, Lotus Fivestar Cinema. The acquisition will cost mm2 Asia a total of RM118 million. The assets will consist of 90 screens and 15,818 seats.

If the deal went through, it would make mm2 Asia the fourth largest cinema operator in Malaysia, with a total of 133 cinema screens. The purchase would also be significant for the earnings of mm2 Asia as it would boost its earnings per share from 77 cents per share before the acquisition to 81 cents per share, an increase of 5.2%.

The second growth engine of mm2 Asia might be its recent licencing agreement to produce the world-famous show “The Voice” in Singapore and Malaysia. Mm2 Asia has plans to bring the singing competition show to Singapore and Malaysia. It is scheduled to be air in 2017. Given the great success of “The Voice” in other countries, the potential for mm2 Asia to benefit from it here is promising as well.

Lastly, the company has even invested into a new technology venture to bring its entertainment to a new level. Mm2 Asia entered into a Memorandum of Understanding with RINGS.TV Pte Ltd to invest up to a 30% stake in the interactive live streaming broadcasting platform.

RINGS.TV is an interactive broadcasting technology platform that can broadcast live concerts, performance, conferences and other events. The new technology platform might help mm2 Asia distributes its content to the younger generations of viewers who are adapting more toward the new ways of consuming entertainment.

Mm2 Asia has been very aggressive in pursuing growth opportunities throughout the region. These few initiatives are just a few example of how the company is transforming itself in recent years. It would definitely be interesting to see if the company can successfully bring itself to new heights with these ventures.

Mm2 Asia currently trades at 50.6 times its earnings and does not offer a dividend.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.