Thailand
Major eyeing CLMV to help drive revenue
SET-listed Major Cineplex Group Plc, operator of the country’s largest cinema chain, is set to expand into Myanmar next year to help boost revenue.
After the successful expansion in Laos and Cambodia this year, Major Cineplex is planning to expand its cinemas to Myanmar next year, according to chairman Vicha Poolvaraluck.
The company’s cinema expansion in Myanmar is to serve the increasing demands in Thailand’s neighbouring countries, especially Cambodia, Laos, Myanmar and Vietnam (CLMV), he said.
“Myanmar is the largest international market for Major Cineplex after Laos and Cambodia. We look forward to taking part in this rising opportunity,” he said.
“People in Myanmar, Lao and Cambodia have a strong movie culture, as Thailand does, so the expansion will continue to grow gradually.”
Mr Vicha said that Thai movies are popular in CLMV and he hopes for Thai movies to become more popular in the future because the company is banking on these international markets to be a major source of revenue in the future.
“Thai movies are one of the most cross-culture tools for making Thailand prosperous in any aspects.” He said.
Mr Vicha hopes the cinema expansion in Thailand and abroad will help boost revenue by 10-15% next year.
Last year, Major generated 10 billion baht in full-year revenue, of which 5 billion came from movie ticket sales. The remaining 5 billion baht was generated through snacks and beverages, advertising and event roadshows.
During the first nine months of 2017, Major posted a net profit of 1.11 billion baht on revenue of 7.83 billion.
In Thailand, the movie industry is expected to grow more than 10% next year as there is a surfeit of quality movies lined up for audiences.
Mr Vicha believes Major will perform on par with the industry in terms of revenue growth.
He said Major Cineplex’s cinemas cover more than 40 provinces and Cineplex will try to expand to cover the remaining 30 provinces.
“It depends on the hypermarkets such as Tesco Lotus and Big C because Major Cineplex won’t open stand-alone cinemas,” Mr Vicha said.
He said Major cinemas will expand to 1,000 screens in 2020, from 800, and will have more than 2,000 screens within the next eight years.
In a separate development, the world’s leading movie and entertainment technology IMAX yesterday announced its latest projects for 2018 in collaboration with Major Cineplex.
Chief executive Richard Gelfond said he believes streaming videos and mobile movie application will not affect IMAX as the experience of watching a movie at the cinema is totally different.
He also said that Asia and CLMV countries have high growth potential, especially China, Thailand, Laos, Cambodia and Vietnam as moviegoers are increasing in numbers.
“Asia is the world’s most exciting area for IMAX because the company has more than 500 screens in China, which will increase to 900 screens in five years,” said Mr Gelfond.
He said Malaysia, India and Thailand are also the successful markets for IMAX’s expansion.
However, he said IMAX plans to double its screens from 1,400 screens, but only when the time is right.
MAJOR shares closed yesterday on the Stock Exchange of Thailand at 29.25 baht, down 25 satang, in trade worth 62.6 million baht.
Source: https://www.bangkokpost.com/business/news/1385618/major-eyeing-clmv-to-help-drive-revenue