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SCMP Reporter

Box-office takings for Hong Kong films remained weak in the first half of the year despite the boom in the economy.

Total box-office takings slumped 18 per cent over the previous year's first half, to $403 million, mainly due to the lack of quality films, according to a local cinema operator.

'For the first half of this year, many Hollywood films were launched, but the decrease in local production affected the box office,' said Bob Vallone, director of Lark International Multimedia, which owns and operates UA Cinemas Circuit.

UA Cinemas' revenue for the first half of the year fell 9 per cent compared with the same period last year, but outpaced the  rest of the industry.

Mr Vallone expects the box office to  perform much better in the second half, as eagerly-awaited movies such as Madagascar and Harry Potter and the Goblet of Fire are  released.

'Our target is set to achieve 12 per cent full-year growth in the box office,' said Mr Vallone. If the target was achieved, it would be the first rebound in  UA's box office after two consecutive years of declining revenue, he said.

'We hope the Hong Kong operation can return to profit this year.' Sars in 2003 and the weak economy in 2004 drove the firm  into the red.

Cinemas still faced a challenging environment. Mr Vallone said  operational costs - films, rents and staff costs - were under  pressure. In order to deal with the surge in costs, UA had gradually increased its ticket prices. UA Admiralty has increased its standard ticket price from $60 to $65.

However, Mr Vallone said the increasing cost of renting premises would not flow through to ticket prices yet because its cinema leasing agreements ran for eight to 10 years.

UA Cinemas plans to expand its network next year by investing in two more cinemas and renovating its Sha Tin movie houses. UA now operates eight cinemas with a total of  44 screens.

The company had a market share of about 35 per cent  in the first half of the year, while Broadway Circuits  had  30 per cent of the market,  Mr Vallone said.



Local box-office takings slump over a lack of quality movies