Leading South Korean exhibitor CJ CGV is looking to raise nearly $800m to shore up its finances after the worst of the Covid-19 pandemic and to invest in future innovations.
The company announced today (June 20) that it will sell stock to its shareholders to raise KW570bn (US$442m) and is also looking to raise $349m (KW450bn) in in-kind investments. Parent conglomerate CJ Group will shoulder nearly half the burden of these financial injections.
CJ CGV, which also holds multiplexes in several other territories including Vietnam, Turkey, the US and Indonesia, stated it is planning to use part of the injection to expand its special screens that use CJ’s proprietary 4DX and ScreenX systems that enhance the movie-viewing experience. 4DX employs synchronised motion seats as well as environmental effects such as wind, water, scent and snow, while ScreenX uses both walls to the side of a screen to create an extended and immersive effect.
“The recovery of moviegoers continues, but also the demand for special theatres such as 4DX and ScreenX and alternative content such as live concerts and sports events is increasing,” said a CJ CGV spokesperson, adding it would continue to provide new experiences and develop innovations.
The exhibitor noted that CJ CGV’s special theatres – including 4DX, ScreenX and premium theatres – have nearly doubled their share of the company’s sales, rising from 16% in 2019 to 31% today.
Alternative content such as BTS films, concerts and live sports events also continue to sell out, and had in May already exceeded last year’s total performance of 420,000 admissions.
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