Severely affected by the Covid-19 epidemic, in mid-May, Thien Ngan, BHD Vietnam, CGV and Lotte Cinema simultaneously signed documents to the Prime Minister, the Ministry of Culture, Sports and Tourism. Ministry of Finance, State Bank on supporting film businesses to overcome difficulties because of the pandemic.
Businesses requesting support in tax, loan interest, insurance payment extension, recognizing movie screening as essential activities and soon for cinemas to reopen. The report said that the revenue from movie screening and film distribution activities of film businesses is almost zero, while businesses still have to bear the costs of space rental, salaries and employee benefits.
According to the report, in 2020, the business results of CJ CGV Vietnam Co., Ltd (the owner of the CGV cinema complex) plummeted compared to a year earlier because of the impact of the Covid-19 epidemic.
Revenue in 2020 of CJ CGV Vietnam Co., Ltd. reached nearly 1,400 billion VND, down over 60% compared to 2019. Increased costs caused CGV Vietnam’s loss to increase suddenly to more than 850 billion.
Thus, on average, every day, the owner of 79 cinemas across the country loses more than 2.3 billion VND. Also due to difficulties, the company had to close some movie screening facilities during the period.
After 1 month of closure because of the Covid-19 epidemic, the representative of Galaxy also admitted that they suffered a loss of 15-20 billion dong per month. With a number of about 600 employees, this unit was forced to reduce workers’ wages.
“Many people question why when the theater profits are silent, the losses are called. Previously, we had profits but we couldn’t accumulate that amount, but that amount had to be invested and expanded. Therefore, it is not possible to increase the number of screening rooms 10 times compared to before. The film business is really struggling.” on Zingnews.vn quoted a representative of Galaxy emphasized.