CJ CGV Reports Operating Loss of 77.5 Billion KRW in Q3... Deficit Reduced

[Asia Economy Reporter Lee Seung-jin] CJ CGV announced on the 5th that its consolidated operating loss for the third quarter of this year was 77.5 billion KRW, a decrease in the deficit compared to the same period last year (96.8 billion KRW), according to a preliminary report.

Sales increased by 4.4% year-on-year to 162.1 billion KRW. Net loss also narrowed to 123.9 billion KRW.

CGV explained that sales recovered as Turkey and China entered the so-called 'With Corona' phase of gradual daily life recovery, and 4DX sales increased in Europe and North America as well.

By country, domestic sales were 89.3 billion KRW, down 9.5% compared to the same period last year. Operating loss was 43 billion KRW, remaining at a similar level.

Although social distancing measures were strengthened due to a surge in COVID-19 cases, resulting in operating hour restrictions and other impacts, the box office success of Korean films such as "Mogadishu" (3.61 million viewers) and "Sinkhole" (2.19 million viewers) minimized the decline in performance.

In China, sales increased by 42.6% to 51.2 billion KRW, with an operating loss of 17.3 billion KRW. CGV stated that performance recovery was somewhat delayed due to a national mourning atmosphere caused by casualties from floods in July.

In Turkey, quarterly audience numbers recovered to 61% compared to 2019, recording sales of 12.7 billion KRW and an operating loss of 3.9 billion KRW.

On the other hand, Vietnam (sales of 900 million KRW, operating loss of 5.4 billion KRW) and Indonesia (sales of 500 million KRW, operating loss of 5.1 billion KRW), where theater operations were suspended due to the resurgence of COVID-19, also reduced their deficits.