Wang Jianlin-controlled Wanda Film flags first-half loss of up to US$228 million as coronavirus pandemic keeps cinemas shut
- Over 600 theatres of China’s biggest cinema chain operator in the mainland have been shut since January
- The pandemic is expected to cause box office revenue losses of US$4.3 billion this year in the world’s second largest cinema market
Wanda Film Holding, China’s biggest cinema chain operator controlled by billionaire Wang Jianlin, is feeling the strain from the closure of cinemas and delay in movie releases due to the coronavirus pandemic.
The Shenzhen-listed company said in a stock exchange filing on Tuesday that it expects first-half net loss to reach up to 1.6 billion yuan (US$228.4 million) compared to a net profit of 524.27 million yuan a year ago.
“While the coronavirus pandemic has caused an unfavourable impact to the company’s short term operational results, it will not however cause a lasting impact on our continuous profitability,” it said in the filing, without giving further details.
The company said that the more than 600 cinemas it operates in 230 mainland Chinese cities have remained closed since January 23, the day before the Lunar New Year when China imposed sweeping lockdowns to prevent the spread of the virus that originated in Wuhan, Hubei province.
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Since March, Wanda Film’s overseas cinemas have also been closed, it said in the announcement, as the pandemic continued to spread globally. According to the company’s 2019 annual report, its 53 overseas cinemas are mostly in Australia and New Zealand.
In April, the China Film Administration estimated that the coronavirus-related shutdown would cause box office revenue losses of more than 30 billion yuan this year.
Chinese tycoon Wang Jianlin’s cinema empire feels the pain
Last year, China’s box office hit a record high of 64.27 billion yuan, the world second-largest after the United States, data from internet entertainment service provider Maoyan Entertainment showed.
The production of some of its films has also been delayed, Reuters reported. Detective Chinatown 3, a film whose top investor is Wanda Film, was originally expected to be shown in cinemas in January during the Lunar New Year. However it has yet to be released due to the shutdown.
According to a report from China Galaxy Securities in April, Wanda Film was the mainland’s top ranked cinema operator for the eleventh year in a row in terms of box office receipts, audience numbers and market share.
