In 2022, the after-tax profit of Galaxy EE - the company that owns the Galaxy Cinema cinema chain - was negative more than 620 billion VND, equivalent to a loss of nearly 2 billion VND per day.
The above information has just been announced by Galaxy Entertainment and Education Joint Stock Company (Galaxy EE). This loss increased by about 68% compared to 2021.
The huge loss caused Galaxy EE's equity to decrease more than 3 times to about VND260 billion. The company continued to increase its liabilities, so the debt-to-equity ratio increased from 0.92 to 5.2 times. By the end of last year, the company had more than VND1,350 billion in liabilities, an increase of 74% over the same period last year.
In the bond channel alone, the company recorded an outstanding debt of VND200 billion with 8 lots issued since 2021. All have a term of 4 years and an interest rate of 10% per year, with interest paid every 6 months. Last year, the company spent VND20 billion paying interest on the above bond lots.
Sharing with VnExpress , a representative of Galaxy EE said the company suffered a big loss last year due to many objective reasons and the general impact of the economy. The ecosystem of this business is affected by the pandemic. Therefore, the company is still in the process of overcoming the "double hit" of Covid and economic stagnation.
This loss of more than VND620 billion is also "part of the company's development and expansion plan". Last year, Galaxy Education invested in acquiring the FuNIX online programming training school from FPT Corporation and opened courses with university certificates. With Galaxy Play, the company invested in film projects such as Chi Chi Em Em 2 and Con Nhót Mót Chong, which were released this year with a return on investment (ROI) of over 50%. In addition to movies, the company also invested in 6-8 exclusive series projects for the online viewing platform.
As for Galaxy Studio, the company representative said that this unit is still operating effectively and has had a stable profit in the past time, especially in 2022 and the first 6 months of 2023. At the end of this year, the company will open two cinema complexes and bring new film projection technology to Vietnam. "Galaxy Studio's financial situation is currently very good, with enough resources to continue expanding the cinema system and business operations," said a representative of Galaxy EE.
Regarding the rapid increase in total liabilities, Galaxy EE said that "this is a short-term issue". The company has received funding until the end of 2024. Therefore, when the economy recovers, this ecosystem will be profitable.
Customers are waiting to buy tickets at Galaxy Cinema (Tan Binh District, Ho Chi Minh City), late December 2021. Photo: Nhat Thuc
Galaxy Entertainment and Education Joint Stock Company, formerly known as Galaxy Media and Entertainment Joint Stock Company (Galaxy ME), is operating many units such as film producer Galaxy Production, distribution and cinema Galaxy Studio, online cinema platform Galaxy Play, Galaxy Media, Galaxy Education, Galaxy Communications. Of which, distribution and cinema, online cinema and online education are the three most prominent segments.
Galaxy Studio currently distributes films exclusively for Walt Disney Studios, Sony Picture Studios and other independent film studios. Domestically, this unit has been successful with I See Yellow Flowers on the Green Grass (revenue of 78 billion VND) or You and Trinh (revenue of over 100 billion VND). The company also owns the Galaxy Cinema chain with 18 clusters nationwide.
In recent years, Galaxy EE has focused on developing the Galaxy Play online movie platform. The company itself announced that since its establishment in 2015, the platform's revenue has increased continuously. In 2021, Galaxy Play had 4.5 million cumulative paying users.
The education sector is also being promoted by this enterprise. In 2020, Galaxy Education invested in merging with Hoc Mai - one of the first online education platforms for high school students in Vietnam. After that, the company successively participated in the online education sector for all preschool, high school, university, and vocational training sectors.
Siddhartha
Source link
Comment (0)