Gaining over $118 million on revenue, is CGV taking over the cinema market in Vietnam?
By Tran Dung
April 06, 2018 | 06:52 AM GMT+7
The CGV cineplex Vietnam is posing a risk of exclusive distribution in the current cinema market, especially, with the recent shutdown of Platinum, another big competitor.
CJ CGV gained $118 million in Vietnam in 2017.
Even though the market demand is constantly increasing, not all cinema operators are doing well, especially in today intense competition.
“The decision of BH to invest in the cinema market was to established an outlet for BHD-produced films, to prevent a reliance on price pressuring from overseas partners,” said Bich Hanh Ngo, director of BH.
There are only a few big names in the market like CGV, Lotte Cinema, BHD and Galaxy. Among them CGV has established their leading position in Vietnam with a strong financial support from its parents firm.
Aside from being the biggest cinema’s operator, CJ CGV is also the top publisher of American Blockbusters such as UPI, Pixar, Disney or Warner Bros. The rest of the film distribution market belongs to Galaxy Cinema.
According to CGV’s 2017 financial statement, this Korean enterprise is currently holding 47 percent of the market share in Vietnam with 53 cinemas and 324 screens mainly located in Hanoi and Ho Chi Minh city.
In the last three years, the revenue of CGV cineplex Vietnam has increased continuously. CGV has tripled their revenue since 2015. In particular, their revenue reached $118 million in 2017, increase 42 percent compared to 2015.
In 2017, CGV reported a profit of $6 million, whereas in 2015, their profit was only $2.3 million. The growth in CGV’s revenue and profit mainly comes from the sales of movie tickets, popcorn and drinks due to the increasing preference for the cinemas, especially in the big cities like Hanoi and Ho Chi Minh city.
Seeing the success of CGV, many enterprises would like a part of the market share. For instance, the development of Beta Cineplex. Nevertheless, it has not been successful as expected.
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