CJ 4D Plex is the world's first to successfully commercialize 4DX, a special theater that provides a five-sense experience, as a feature film screening venue.
[Asia Economy Reporter Hwang Yoon-joo] CJ CGV announced on the 7th that its consolidated operating loss for the second quarter of this year was tentatively estimated at 130.5 billion KRW, turning to a deficit compared to the same period last year (operating profit of 23.5 billion KRW). Sales for the same period decreased by 91.37% to 41.6 billion KRW compared to the previous year. Net loss widened to 174.9 billion KRW.
The turnaround to a deficit was largely due to the impact of the novel coronavirus disease (COVID-19). In Korea, some theaters closed or reduced screening hours but continued operations, yet most movie releases were postponed, affecting performance. In other countries, prolonged business suspensions led to deficits due to fixed costs such as rent and labor expenses.
However, starting from June with '#Alive', followed by domestic new releases like 'Peninsula' and 'Steel Rain 2: Summit', the worst phase is considered to have passed as these films consecutively premiered and performed well at the box office.
Fixed cost burdens such as rent and labor expenses were improved by more than 30%, and services that can further reduce costs, such as non-face-to-face services, were introduced. Additionally, CGV stated that the inflow of paid-in capital amounting to 220.9 billion KRW last month is expected to stabilize finances.
Overseas theaters that had been closed also reopened. In Vietnam, operations resumed from May 8, with 70 out of 84 CGV theaters locally already open. The Korean film 'Peninsula' was released last month, and the number of viewers recovered to 50% of last year's level.
In China, 104 out of 139 theaters reopened from the 20th of last month. Turkey reopened theaters from the 7th, and Indonesia will sequentially open theaters from the end of this month.
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