NEW YORK, April 17, 2023 (GLOBE NEWSWIRE) -- AB International Group Corp. (OTCQB: ABQQ), an intellectual property (IP) and movie investment and licensing firm, announces its unaudited financial results for the six months ended February 28, 2023. The financial results have been filed in a 10-Q with the U.S. Securities and Exchange Commission (the "SEC").
Key Financial Highlights:
Our total revenue reported for the three and six months ended February 28, 2023 was $298,439 and $535,251, respectively. Our total revenue reported for the three and six months ended February 28, 2022 was $1,800,000.
The revenue for the three and six months ended February 28, 2023, was mainly attributable to the license fee received in connection with the licensing of our NFT MMM platform to a third party, as well as the revenue generated from movie tickets and food sales from our newly operated movie theatre. On the other hand, the revenue for the three and six months ended February 28, 2022, was attributable to the sale of mainland China copyrights and broadcast rights for the movies “Love over the world,” “Our treasures,” and “Confusion.”
Our cost of revenues for the six months ended February 28, 2023, was $1,857,951, compared to $1,373,134 for the same period in 2022. The increase in cost of revenues was mainly due to the amortization of copyrights and broadcast rights and MFT MMM platform, as well as film rental and food costs related to our cinema segment.
Similarly, our cost of revenues for the three months ended February 28, 2023, was $912,048, compared to $686,567 for the same period in 2022. The increase in cost of revenues was also primarily attributable to the amortization of copyrights and broadcast rights and MFT MMM platform, as well as film rental and food costs related to our cinema segment.
We have started the operation of our movie theatre since October 2022. For the six months ended February 28, 2023, we generated total revenue of $177,965, including $115,918 from ticket sales, and $62,047 from food and beverage sales. Total cost for our cinema segment was $78,708, which resulted in gross profit margin of 56%. We expect to have continued growth in our cinema segment with the recovery of movie industry from the impact of the pandemic.
Consequently, we incurred a gross loss of $1,322,700 for the six months ended February 28, 2023, compared to a gross profit of $426,866 for the six months ended February 28, 2022. Similarly, for the three months ended February 28, 2023, we recorded a gross loss of $613,609, compared to a gross profit of $1,113,433 for the same period in 2022. The decrease in gross profit for both the three and six months ended February 28, 2023, as compared to the same period last year, was primarily due to the absence of sales of copyrights and broadcast rights during the current period, as well as higher costs associated with amortizing movie broadcast rights and MFT MMM platform.
We expect to generate increased revenue in the future by selling movie and TV drama copyrights and broadcast rights, achieving enough members to start subscriptions for ABQQ.tv and generating movie tickets and related revenues from our Mt. Kisco movie theatre in New York. We also hope to generate more license revenue from our NFT MMM platform.
About AB International Group Corp.
AB International Group Corp. is an intellectual property (IP) and movie investment and licensing firm, focused on acquisitions and development of various intellectual property. We are engaged to acquisition and distribution of movies. The Company operates its first movie theater at 144 Main Street, Mount Kisco, NY 10549. The Company engages operation movie theaters in NY into nationwide (www.abcinemasny.com). The online service will be marketed and distributed in the world under the brand name ABQQ.tv. ABQQ.tv is expected to generate a new and profitable revenue stream immediately following its launch derived from its hybrid subscription and advertising business model. The company owns the IP of the NFT movie and music marketplace (NFT MMM) as the unique entertainment industry Non-Fungible Token.
For additional information visit www.abqqs.com; www.abcinemasny.com and www.ABQQ.tv.
Forward-Looking Statements
This press release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to changes to the Company's management team and statements relating to the Company's transformation, financial and operational performance including the acceleration of revenue and margins, and the Company's overall strategy. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the possibility of business disruption, competitive uncertainties, and general economic and business conditions in AB International Group markets as well as the other risks detailed in company filings with the Securities and Exchange Commission. AB International Group undertakes no obligation to update any statements in this press release for changes that happen after the date of this release.
Investor Relations Contact:
Jeff Deng
(212) 918-4519
corp@abqqs.com
