Major lines up B1.5bn blockbuster expansion

Major lines up B1.5bn blockbuster expansion

Cinema operator will open 100 new screens

Major Cineplex chairman Vicha Poolvaraluck stands inside a cinema at the Quartier CineArt project at the EmQuartier shopping complex on Sukhumvit Road in Bangkok.
Major Cineplex chairman Vicha Poolvaraluck stands inside a cinema at the Quartier CineArt project at the EmQuartier shopping complex on Sukhumvit Road in Bangkok.

SET-listed Major Cineplex Group Plc has earmarked 1.5 billion baht for expansion this year in the biggest investment in the cinema chain's 19-year history.

It will open 100 new screens nationwide, bringing the total to 610, as it sees a lot of opportunities in the entertainment business despite the economic downturn.

"Watching movies is one of the cheapest forms of entertainment and remains unaffected by the sluggish economy. That's why we'll continue with this huge investment this year," said Vicha Poolvaraluck, chairman of Thailand's biggest cinema operator.

Last year, Major saw the frequency of visits by its moviegoers increase by 8%, while its revenue went up 12%.

It expects its number of visitors will grow by 10-15% to 34-35 million this year.

This year, Major will open 100 new screens, more than double the 40 it launched last year.

Among the new screens, 60 will be in Bangkok and 40 upcountry.

Mr Vicha said the huge investment was in line with Major's five-year plan to have 1,000 screens by 2020 both domestically and internationally.

Its growth will rely on new shopping centres whose developers are gearing up to build projects in many locations in Bangkok and major provinces.

"We intend to have a presence for Major in every province eventually," Mr Vicha said.

He said Thailand's cinema industry still had much room to grow compared with South Korea.

Last year, more than 200 million movie tickets were sold for South Korea's 2,000 screens.

Mr Vicha said the company would continue to seek new opportunities to broaden its business in the Asean market after expanding to Vietnam and Cambodia last year. Major is in talks with partners in Laos for a cinema venture there.

Major expects its international cinema operations will contribute 10% of revenue by 2020, with plans to have 100 screens.

The aggressive expansion and blockbuster movies will help Major to grow its revenue by 15% this year, up from a normal 10% in recent years. Last year, Major posted a net profit of 1.08 billion baht on revenue of 9.05 billion.

Some 500 million baht out of the 1.5-billion-baht budget has already been spent on its Quartier CineArt, a 6,500-square-metre cinema at The EmQuartier shopping complex on Sukhumvit Road in Bangkok. The Quartier CineArt has eight screens with 1,440 seats.

The new brand will focus on upper-middle-class customers who love art and innovation. Ticket prices range from 250 to 1,800 baht per seat, with 1 million tickets expected to be sold this year.

Major hopes Quartier CineArt will break even within six years and be its new flagship cinema.

MAJOR shares closed yesterday on the SET at 32.75 baht, up 1.50 baht, in trade worth 69.8 million baht.

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