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Tuesday, 10 July 2018

(NST) Golden Screen Cinemas injects RM300m in capex to finance expansion


KUALA LUMPUR: Golden Screen Cinemas Sdn Bhd owner PPB Group Bhd will be spending another RM300 million in capital expenditure to finance its cinema expansions and upgrading in Malaysia, Vietnam and Cambodia this year.Golden Screen Cinemas Sdn Bhd owner PPB Group Bhd will be spending another RM300 million in capital expenditure to finance its cinema expansions and upgrading in Malaysia, Vietnam and Cambodia this year.

Its cinema business, which currently contributes about 20 per cent of the group’s total earnings, also denied reports about selling any stake in the film exhibition business segment under GSC.

“No, we are not selling our stake in GSC,” said GSC chief executive officer Koh Mei Lee.

“We are continually expanding our cinema business. Last year, we opened three new cinemas and next year we will be opening two new cinemas with nine new cinemas to be opened in the next two to three years.

“This year we are focused on renovating our flagship cinemas such as One Utama, Gardens and IOI Puchong with about RM300 capital expenditure in total for new cinemas as well as renovations,” she added.

Koh said with its 40 per cent stake in Galaxy in Vietnam, GSC was looking at opening five new cinemas every year, adding to about 30 screens on a yearly basis.

“This year, we hope to open nine screens in our new cinema in Phnom Penh, Cambodia with about US$4 million capex there,” she added.

GSC is the largest cinema exhibitor in Malaysia with over 40 per cent market share.

Its distribution arm, GSC Movies Sdn Bhd, is the largest independent distributor of Chinese, English and Malay language films in Malaysia.

PBB Group owns 40 per cent stake in Galaxy Studio Joint Stock Company (Galaxy Studio), which operates the Galaxy brand of cinemas in Vietnam.

For 2018, GSC has allocated more than RM21 million to continue to enhance the movie-going experience and we will focus on upgrading and refurbishing our key cinemas.

In Vietnam, the company is eyeing to open five cinemas totalling 26 screens to tap the growing market there.