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CGV Blitz to add more cinemas, holds stock split
Cinema operator PT Graha Layar Prima, which runs the popular CGV Blitz cinemas, is eyeing double-digit revenue growth through the opening of new cinemas and the renovation of existing facilities in a bid to attract more customers
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inema operator PT Graha Layar Prima, which runs the popular CGV Blitz cinemas, is eyeing double-digit revenue growth through the opening of new cinemas and the renovation of existing facilities in a bid to attract more customers.
The publicly listed company is planning to ramp up revenue by 25 percent to Rp 1.06 trillion (US$75.26 million), from Rp 849.24 billion in 2017, as it will open more cinemas across the country this year.
“We plan to open 16 new cinemas this year, not only in second tier cities, but also in third tier cities,” Bunyan Sofyan, Graha Layar Prima independent director said on Wednesday.
As of December last year, the company managed 42 cinemas.
It has allocated Rp 500 billion in capital expenditure (capex) to build new and renovate existing cinemas, and try to differentiate itself from competitors by providing new experiences for visitors. For example, it has started to open a new venue in each cinema called Warung Kopi, which literally means coffee shop. The capex will come from the loans from three banks that were obtained last year.
The company, listed on the bourse under the code BLTZ, booked a net profit of Rp 12.44 billion for the first time in 2017, after suffering losses of Rp 15.5 billion in 2016 and Rp 36.1 billion in 2015.
Based on the company’s record, 67.08 percent of its revenue in 2017 came from ticket sales, 21.84 percent from food and beverages, 10.84 percent from events and advertisements and 0.24 percent from other sources.
At the shareholder’s meeting on Wednesday, Graha Layar Prima held a stock split with a ratio of 1:2 in order to comply with Indonesia Stock Exchange (IDX) regulations and increase the liquidity of its stocks.
Graha Layar Prima corporate secretary Mutia Resty said the stock split was held for all stock classes. The company has three classes of stocks with various nominal values.
“This is one of our measures in complying with IDX regulations regarding the shortage of free float shares. The stock split was a way to increase public ownership that now stands at 9 percent, but with 38 million shares,” she said.
IDX requires a publicly listed company to maintain a free float ratio of at lease 7.5 percent and 50 million shares. With the stock split, the company’s outstanding public shares stands at 76 million shares.
The firm’s shareholders composition, as of April 30 this year, included Singapore’s Coree Capital Ltd, which held 40 percent of shares, South Korea’s CJ CGV Co. Ltd with 51 percent of shares and the remaining 9 percent of shares owned by the public.
Furthermore, shareholders agreed to revamp its board of commissioners and board of directors at the shareholder’s meeting on Wednesday.
Kim Kyoung Tae became the company’s new president director, replacing Bernard Kent Sondakh. The other directors appointed to manage the company were Yeo Deoksu, Tobias Ernst Chun Damek and Jason Tabalujan. In addition, Bunyan Sofyan was appointed as an independent director.
Furthermore, Bratanata Perdana will serve as the company’s main commissioner and Gatot Subroto as an independent commissioner.
