International stock quotes are delayed as per exchange requirements. I am a longtime entertainment consultant and adjunct professor at the USC Marshall School of Business where I teach entertainment marketing. China’s consumers on average make less than one trip to the cinema in a year, while annual spending on movies averages just $4 per capita, much lower than the $16 in Japan and the $29 in North America. In the 1930’s about 65% of Americans visited a movie theater each week, but that decreased to about 10% today. CMCSA AMC (NYSE:AMC), a majority-owned subsidiary of Wanda Group, is the largest cinema chain in the U.S. and the world with 8,110 screens in 631 cinemas, taking a market share of 24% in the U.S. Hoyts Cinema,Australia. All rights reserved. Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. To stay afloat, they need a family of four to shell out $70+ on four tickets and expensive popcorn and beverages, while studios want to give families the option of paying just $20 for the entire household to premiere the film at home. But will it? In 2014 the company had 4.2 billion yuan ($681.7 million) in box office revenue, the highest grossing in China. Dalian Wanda Group has described reports about the imminent collapse of its AMC Entertainment unit as ‘pure rumours’ after the company’s stock plunged and bonds fell to … [6] In 2014 the China Securities Regulatory Commission gave approval for the company's IPO. Mutual Funds & ETFs: All of the mutual fund and ETF information contained in this display, with the exception of the current price and price history, was supplied by Lipper, A Refinitiv Company, subject to the following: Copyright © Refinitiv. Wanda Cinemas are very popular and have become standard fixtures in commercial complexes. Huang recommends buying the shares of cinema operators. However, even with the recent falls, the shares are still by no means cheap. Wanda Cinema Line, which is a subsidiary of real estate conglomerate Dalian Wanda Group, is the largest cinema operator in Asia, with almost 1,700 screens as of the year’s first half. Using the 2019 revenue for AMC as a comparable, that might drop its revenue from $5.47 billion to $2.3 billion. As a long-term investment, the picture is clearer. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. Data may be intentionally delayed pursuant to supplier requirements. One approach would be to buy the shares of potential acquisition targets for the rapidly expanding Wanda Cinema. ... Imax China Jumps on Wanda Cinema … The pullback could present a good opportunity to buy, argues Deutsche Bank analyst Tallan Zhou, who rates Wanda Cinema a buy with a target price of CNY202 a share. Using 2019 box office figures of $42.5 billion worldwide and $11.4 billion domestically as a guide, we can expect the 2020 box office to decline by $14 billion globally and $3.76 billion domestically. Dalian Wanda Group has described reports about the imminent collapse of its AMC Entertainment unit as ‘pure rumours’ after the company’s stock plunged and bonds fell to … ), CJ CGV (079160.KS), Cineworld ( That success prompted the CEO of Universal (owned by Comcast), to state that when theaters reopen he expects to release films in theaters and via PVOD. Wanda Cinemas (simplified Chinese: 万达院线; traditional Chinese: 萬達院線; pinyin: Wàndá Yuànxiàn) is a cinema operator in China, headquartered in the Wanda Plaza (万达广场) in Chaoyang District, Beijing. Box office revenues so far this year are up a brisk 48% and the rapid pace of growth is expected to see China overtake North America to become the world’s largest movie market by 2017. by 188%. It’s called streaming. On February 5, Wanda Group signed a strategic investment agreement with Alibaba Group and Cultural Investment Holdings. And some people might be less willing to visit theaters out of fear of the virus, or they might have become more comfortable with video-on-demand which has skyrocketed. China’s nascent movie market offers more room for growth than those in developed countries like Japan. AMC’s threat is reminiscent of a scene in the film Monty Python and the Holy Grail when King Arthur approaches the Black Knight who is blocking the bridge. 9602.JP Data are provided 'as is' for informational purposes only and are not intended for trading purposes. ), Major Cineplex (MAJOR.TH), PVR Cinema (532689.IN) and Orange Sky GH Entertainment as possible additions to the shopping list. The decline was a result of the introduction of television, movie videos, DVDs, videogames, and finally streaming. This is despite a $668 million loss in 2019 from Wanda’s publicly traded film unit, a more significant loss expected in 2020, data that shows box office earnings per screen are falling in China, and the uncertain long-term future of the cinema business. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. I conducted roughly one thousand research studies that helped build multimillion-dollar businesses across film, television, toy, and other industries. T, Impact 50: Investors Seeking Profit — And Pushing For Change. I have written extensively on the topic of entertainment, with Creating Blockbusters being my latest book, and have been quoted in a variety of publications and news programs including The New York Times, Los Angeles Times, USA Today, ABC News, and Fox Business. – May 22, 2015, China Has a New Tourist Mecca: CITS – Mar.13, 2015, Lenovo To Dial Up Growth From Smartphones – Feb.3, 2015, Belle International Steps Up As Yield Play – Jan.22, 2015. © 2020 Forbes Media LLC. ... and the uncertain long-term future of the cinema business. Sources: FactSet, Tullett Prebon, Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. Universal Pictures recently announced that Trolls World Tour, which bypassed theaters and went to premium video-on-demand (PVOD) due to theater closures, has already netted $100 million in rentals in just three weeks. This copy is for your personal, non-commercial use only. View 002739.CN financial statements in full, including balance sheets and ratios. [2] In 2015 it was again the largest cinema chain by box office gross, with US$945 million, representing 14% of the market. Kidsplace’s network, half the size of the cinema network, has taken only three years to attain the visitor numbers of what Wanda Cinemas has achieved after 13 years. I am a longtime entertainment consultant and adjunct professor at the USC Marshall School of Business where I teach entertainment marketing. [12][13], Some locations are named Wanda International Cinemas. As of 2014 Wang Jianlin is the head of the company. But do you really want to risk your personal retirement or your company’s entire pension fund on what an analyst says next in this unstable environment? Wanda Group remains the controlling shareholder with 48.09% of shares in Wanda Film. It was foiled in this last effort when the Chinese government restricted currency outflows. [2] As of January 2018, Wanda Cinema remained China's largest film distributor. By 2020, movies are forecast to become a CNY100 billion business in a country where disposable incomes are rising rapidly and the government has been supporting development of “the arts and cultural industry.” The more than tripling of the industry from the current CNY30 billion would translate to growth averaging around 23% a year – an increasingly rare find as the slowing Chinese economy puts the brakes on growth for many industries. The decline was a result of the introduction of television, movie videos, DVDs, videogames, and finally streaming. Copyright © FactSet Research Systems Inc. All rights reserved. Theater Closures Are Devastating – With No Clear Endpoint. Find the latest WANDA FILM HOLDING (002739.SZ) stock quote, history, news and other vital information to help you with your stock trading and investing. NEW YORK, NY - March 18 MANDATORY CREDIT Bill Tompkins/Getty Images AMC movie theatre closing(s) ... [+] due to the coronavirus COVID-19 pandemic on March 18, 2020 in New York City. Comments? Case in point: On April 13, 2020 analyst Eric Wold of B. Riley FBR wrote in an investors note that, “We no longer see value in maintaining positions in AMC shares at this point.” The stock dropped 20% to $2.08. But even if theaters rise above these hurdles, a 33% cut in box office revenues is devastating. You would be a daredevil to try, considered a fool if you lose, and a mad genius if you win. That distance is greater than just every other seat. In a company notice issued to the Shenzhen Stock Exchange, Wanda Film Holdings, a subsidiary of Dalian Wanda Group, said it plans to acquire a 96.83% stake of Wanda Media from the company's 21 shareholders at a price of 11.6 billion yuan ($1.77 billion) via cash payment and share issue. Luckily, they obtained a federal stimulus lifeline check to keep them solvent. Theaters will exist in the future for those of us who love the experience, but their numbers and influence will be greatly diminished as streaming expands. An abundance of bad news has dogged theater chains since the coronavirus forced theaters to close. IMAX shares were already down by nearly 42%, and on April 29, 2020 IMAX posted a first-quarter loss of $49.4 million, down from a profit of $8.3 million a year earlier. Wanda’s Hoyts Cinema is the second largest cinema chain in Oceania, owning 472 screens in 54 cinemas. Of which, Alibaba invests 4.68 billion yuan and CIS invests 3.12 billion yuan, becoming the second and third largest shareholders after transaction. The losers, like theaters chains, are hampered by focusing on traditional distribution paths. https://www.barrons.com/articles/how-to-invest-in-chinas-movie-boom-1441958388. They will need to follow social distancing guidelines for people to sit 6 feet apart. They will reshape the industry as I explained in an earlier article. As of January 2018, Wanda Cinema remained China's largest film distributor. Wanda Cinemas (simplified Chinese: 万达院线; traditional Chinese: 萬達院線; pinyin: Wàndá Yuànxiàn) is a cinema operator in China, headquartered in the Wanda Plaza (万达广场) in Chaoyang District, Beijing. Source: Kantar Media, Extraordinaries & Discontinued Operations, News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. Stock analysis for Wanda Film Holding Co Ltd (002739:Shenzhen) including stock price, stock chart, company news, key statistics, fundamentals and company profile. Could you make money from buying the stock of a theater chain in hopes business will turn around short-term? (NBCUniversal) by nearly 60%, Apple For the best Barrons.com experience, please update to a modern browser. Yes, this is a worst-case scenario and speculation on my part, but the worst case is probable, especially since major cities may lag behind the rest of the country in reopening which would cause studios to further delay films.