Vietnam cinema profits to double this year: PPB

KUALA LUMPUR: Golden Screen Cinemas Sdn Bhd (GSC), which is owned by PPB Group Bhd, expects profit for its operations in Vietnam to double in the financial year ending Dec 31, 2016 (FY16), from RM6.5 million in FY15.
Speaking to reporters after PPB Group AGM yesterday, GSC chief executive Koh Mei Lee said it intends to open four new cinemas in the country this year.
Koh said together with the increased shareholdings in the Vietnamese company Galaxy Studio Joint Stock Co., it will be able to achieve the target.
Last year, PPB Group raised its equity interest in Galaxy Studio to 40% from 25% previously. Galaxy Studio is a collaboration between PPB Group’s wholly-owned subsidiary GSC Vietnam Ltd and Galaxy Media & Entertainment Joint Stock Co.
“We see a very good potential in Vietnam. With the higher capacity of screens and increased shareholding, we should be able to double what was achieved in 2015,” Koh added.
Meanwhile, Koh said Golden Screen Cinemas (Cambodia) Co Ltd’s first opening of a nine-screen cinema in Phnom Penh was delayed to fourth quarter this year, due to the delay in completion of the shopping mall where the cinema is located.
“So we don’t expect contribution from the Cambodian business so soon,” she added.
Commenting on PPB Group’s FY16 performance, its managing director Lim Soon Huat said the group expects to achieve the same growth as in FY15.
“We expect to deliver the same profit as last year, despite the challenging environment,” he noted.
Last year, PPB Group saw its net profit grew 14% to RM1.05 billion from RM916, 779 in FY14, mainly due to higher contribution from its grains and agribusiness segment, in addition to a foreign exchange gain on its share of Wilmar International Ltd’s results which are reported in US dollar.
At present, the group holds an 18.55% stake in Wilmar, which contributes 65%-70% to its earnings currently.
The group’s revenue increased 9% to RM4.05 billion last year, against RM3.7 billion previously, due to improved revenue from its grains and agribusiness, film exhibition and distribution, and environmental engineering and utilities segments.
With a healthy cash balance of RM1 billion currently and low debt-to-equity ratio of 3.5%, Lim said the group is well-positioned to weather the challenging economic environment and pursue investment opportunities that will further enhance its shareholder value.