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KUALA LUMPUR (Oct 30): Golden Screen Cinemas Sdn Bhd (GSC), Malaysia’s largest theater operator and a wholly owned subsidiary of PPB Group Bhd, will close its theaters across the country throughout November.
This follows the announcement made today by the Malaysian Association of Film Exhibitors (MAFE) to collectively suspend all cinema operations in the country temporarily.
“The industry decision to suspend film screenings and concession operations at all venues was made in light of the recent implementation of the CMCO (Conditional Motion Control Order) in some states in Malaysia, as well as the lack of content due to postponement of major blockbuster films until 2021, “GSC said in a statement.
“This is a temporary measure, however, as GSC continues to monitor the situation and expects to reopen in December 2020 if market conditions improve,” he added.
GSC CEO Koh Mei Lee said the closing is an opportune time for the company to reorganize, strategize and innovate so that it can connect with its audience even from the comfort of their homes.
“It is critical that cinemas are agile to adapt and diversify in order to stay ahead of this new normal, and we look forward to introducing viewers to all the exciting new initiatives we have planned for them in the coming months.” she said.
“We may be navigating uncharted territory now, but I’m sure that once we get past these waves and finally get back to normal, our cinemas will be back with a vengeance. We look forward to welcoming audiences to the movies when they post the titles for the holiday season by the end of the year, “Koh added.
As the film industry has been hit hard by the pandemic with admissions dropping nearly 90% year-on-year, GSC said it has taken this opportunity to diversify its efforts into exciting new ventures including private theater bookings for watch movies. and games, e-commerce, branded merchandising, live performances and dinners at his restaurant and bar: Jin Gastrobar at Aurum Theater.
In September, PPB announced that its net profit for the second quarter ended June 30, 2020 more than doubled to RM332.73 million, from RM159.98 million a year earlier, driven by its partner’s performance of 18%, Wilmar International. Ltd, and its agribusiness segment.
However, GSC posted a loss during the first half of the year due to the Motion Control Order and is expected to continue to be affected by the pandemic, while most of the movie title releases have been postponed until 2021.
Even after the cinemas reopened, they were operating at half capacity.
In terms of expansion, Koh was quoted as saying that these plans have been postponed until 2021 due to the pandemic. According to plans, GSC would allocate RM60 million to establish new outlets in 2021, as well as to upgrade existing cinemas.
PPB’s shares were trading at 36 sen or 1.88% lower at RM 18.84 in afternoon trading, for a market capitalization of RM 27.03 billion.
Read also:
Malaysian cinemas will temporarily suspend operations from November
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