CGV Vietnam Reports Remarkable Revenue Growth in Q1, Surpassing 1 Trillion Dong Mark

CGV Vietnam’s Revenue in Q1 Reaches 1.046 Trillion Vietnamese Dong equivalent to USD 44,894,486.42, a 125% Increase Compared to the 464 Billion Dong Recorded in the Same Period Last Year.

According to the newly released Q1 financial report, CGV, a cinema chain owned by CJ Group (South Korea), earned 393.6 million won, equivalent to 297 million USD, representing a 76.3% increase compared to the same period last year. Currently, CGV owns 591 cinemas with 4,201 screens across six countries, including its home country of South Korea, Vietnam, China, Indonesia, Myanmar, the United States, and Turkey.

Thanks to improved cost management, the gross profit margin of the cinema chain, established in 1998, increased from 26.7% to 33.8%. The company’s expenses did not significantly differ from the same period last year.

After deducting expenses and taxes, CGV incurred a net loss of 38.7 billion won, equivalent to 29.2 million USD. This loss significantly narrowed in the first quarter of the new year compared to the loss of 84 million USD in the same period. If calculated using the EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio, CJ CGV made a profit of 63.3 billion won, approximately 47.7 million USD.

In fact, the significant fluctuations in the cinema chain’s business results were mostly due to the low base in Q1/, which was the period when the COVID-19 pandemic began to be controlled in some markets, allowing services like movie screenings to gradually resume.

Providing further explanation about the Q1 results, CGV stated that the revenue increase was driven by the recovery of domestic customers in major markets such as Vietnam, China, and Indonesia. Additionally, the release of blockbusters such as Avatar 2, Suzume, and Slam Dunk, as well as local films, contributed significantly to the improvement in revenue and profit.

In Q2, CGV forecasts a strong improvement in movie demand, as it coincides with the peak holiday season. Furthermore, highly anticipated Hollywood blockbusters are expected to boost the company’s business results.

In , CJ CGV earned 1.281 trillion won, approximately 1 billion USD, a 74% increase compared to the performance in 2021. The cinema business witnessed a significant EBITDA profit of 246.2 billion won, a sharp increase of 219% compared to the whole year of 2021, equivalent to 191 million USD.

In Vietnam, the number of CGV cinemas and screens remained the same as last year, with 83 cinemas and 483 screens respectively. The scale of CGV’s cinemas and screens in Vietnam is only larger than three markets: Indonesia, the United States, and Myanmar.

Despite facing competition from various rivals such as Lotte, BHD, and Galaxy, CGV Vietnam holds a 51% market share.

In the previous quarter, CGV Vietnam generated revenue of 59.1 billion won, equivalent to 1.046 trillion dong, a 125% increase compared to the 464 billion dong in the same period last year. However, the EBITDA profit only improved from 200 billion dong to 320 billion dong, a 60% increase.

CGV attributed the strong revenue growth in Vietnam to the release of many Tet (Lunar New Year) films. The quarterly operating profit also reached a record high of approximately 164 billion dong, surpassing the previous peak recorded in Q1/2019, before the pandemic.

In Q2, revenue is expected to continue to rise due to the recovery of the domestic film market and the release of global blockbusters.

As we enter the second quarter of the year, CGV Vietnam is optimistic about the upward trend in revenue. The domestic film market is showing signs of recovery, with audiences eager to return to cinemas after a period of restrictions and closures. The pent-up demand for the big-screen experience, coupled with the traditional peak holiday season, is expected to drive a substantial increase in movie ticket sales.

Furthermore, the anticipation is building as several highly anticipated Hollywood blockbusters are scheduled for release in the coming months. These blockbuster films are known to draw large audiences and create a buzz within the industry. CGV Vietnam is strategically positioned to capitalize on this wave of excitement and attract moviegoers with its state-of-the-art cinemas and immersive viewing experiences.

The company is actively working to provide a diverse lineup of films that cater to different audience preferences. In addition to international releases, CGV is committed to promoting and supporting the local film industry by showcasing Vietnamese films that have garnered attention and acclaim. This approach not only contributes to the growth of the domestic film industry but also strengthens CGV’s market presence in Vietnam.

CGV Vietnam’s continuous investment in enhancing the cinema experience has been well-received by movie enthusiasts. The company’s commitment to delivering cutting-edge technology, comfortable seating, and premium amenities has elevated the overall movie-watching experience and garnered a loyal customer base.

While challenges still remain, such as ongoing uncertainties related to the COVID-19 pandemic and potential fluctuations in consumer behavior, CGV Vietnam remains confident in its ability to adapt and navigate the evolving landscape of the film industry. By staying attuned to market trends, maintaining a robust film lineup, and providing exceptional customer service, CGV Vietnam aims to sustain its growth trajectory and solidify its position as a leading cinema chain in the country.