China's largest movie theater operator says it will build 1,258 new screens over the next two years. But the plan is contingent upon raising over $600 million from private investors, which could prove a challenge amid the economic fallout of COVID-19.
With movie theaters shuttered worldwide in the wake of the coronavirus pandemic, the theatrical film business has never looked more precarious. But that's not stopping China's largest exhibition company from doubling down on cinema construction.
Wanda Film Holding's year-end report, released last week, shows that the company suffered a net profit loss of $668 million in 2019, with net cash flow generated from operating activities slipping 13.6 percent and total revenue falling 5.23 percent compared to 2018. With the coronavirus ravaging the theater business, Wanda says it sees its economic picture worsening considerably in 2020. The company previously reported that it expects a net loss of $77.9 million to 92.
China has been building new movie theaters at an astonishing pace for more than a decade, but recent data has hinted that the world's most populous nation may finally have enough screens to meet demand. The country continued building theaters at a rapid clip last year — estimated at 26.6 screens added per day — but average box office earnings per screen slid to the lowest level in more than 15 years. Growth in total admissions also stalled, climbing just 0.
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