CJ CGV Vietnam foresees great losses from the next two weeks as it announced to temporarily halt the operation of all cineplexes in Ho Chi Minh City.
|All CGV cinemas in Ho Chi Minh City will be closed for two weeks |
CJ CGV Vietnam in the evening of March 14 surprised netizens with the declaration published on its Facebook fan page. All CGV cinemas in the city will be closed for two weeks (March 15-31), to prevent a COVID-19 outbreak. Customers who bought the tickets for these days will be reimbursed.
The move took place after the Ho Chi Minh City authorities decided to temporarily close some business establishments to prevent the health crisis. These include cinemas, bars and clubs, internet cafés, massage parlours, and karaoke bars, among others.
In 2019, the South Korean firm earned VND3.66 trillion ($159.13 million) in revenue, up 35 per cent on-year. The figure is equivalent to a monthly revenue of VND305 billion ($13.26 million) and a daily return of VND10 billion ($434,780).
Hence, the company is facing millions of dollars of losses due to the decision. Along with Hanoi, Ho Chi Minh City is a key market for CJ CGV Vietnam with 22 cineplexes, making up nearly half of its revenue in Vietnam. As a result, closing its business for two weeks in the city will set a sizable burden on the giant.
Indeed, since the COVID-19 outbreak, CJ CGV Vietnam cineplexes have been reporting steadily falling performance. The cinema in Vincom Ba Trieu (Hanoi) has been floundering, along with the units in Giga Mall and Pearl Plaza (Ho Chi Minh City).
“Blockbusters were not enough to lure in customers, with visitor count a solid one-third down against the time before the epidemic,” said a CGV’s staff member in Pearl Plaza.