mm2 Asia, the local media entertainment company that owns Cathay Cineplexes, has encountered further financial difficulties, with its net losses soaring to $101.3 million in the second half of the 2026 fiscal year.

This marks a significant increase from the $8.7 million loss reported in the same period of the previous year, as stated by Business Times citing financial results released on Thursday (Aug 28).

In addition, mm2 Asia experienced a decline in total revenue for the fiscal year ending March 31, 2026, dropping to $165.1 million, a 13.9% decrease from $191.8 million in 2024.

mm2 Asia's executive chairman Melvin Ang acknowledged the challenges faced in the second half of FY2026, particularly due to legal and financial issues in their cinema business.

"We value our cinema landlords as essential partners in our business ecosystem. However, the path to recovery has proven to be more prolonged than anticipated, and we empathize with their standpoint."

"We are actively working with all our creditors to negotiate equitable and mutually beneficial solutions to ensure the group's sustainability in the long run," he added.

The financial struggles of mm2 Asia parallel the broader challenges encountered by the cinema industry amid the Covid-19 pandemic, rising costs, and competition from streaming services.

Over the last three years, six Cathay Cineplexes cinemas have shuttered, leaving four operational, while mm2 Asia still owes landlords millions of dollars.

Contact: chingshijie@asiaone.com