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Jakarta, CNBC Indonesia – Issuer in the film industry managing cinemas as well as providing food and beverages, PT Graha Layar Prima Tbk (BLTZ), announced last Monday (12/7), that the company has temporarily suspended the operational activities of CGV cinemas in all locations.
This decision was taken based on the Instruction Letter of the Minister of Home Affairs No. 15 of 2021 concerning Imposition of Emergency Restrictions on Community Activities (PPKM) Corona Virus Disease 2019 in the Java and Bali Region which is part of efforts to tackle and control the corona virus outbreak in Indonesia.
“Therefore, the company must temporarily close all CGV cinema locations until further notification from the government,” wrote Graha Layar Prima Director Yeo Deoksu, quoted in the information disclosure on the Indonesia Stock Exchange (IDX), Tuesday (13/7).
Previously, the cinema business had experienced a slight recovery after the long closure in 2020.
This recovery can be seen especially during the moments of Ramadan and Eid al-Fitr, many people are starting to feel confident again watching films in theaters.
Chairman of the Indonesian Association of Cinema Management (GPSBI) Djonny said that there had been a slight increase but it still had not reached pre-pandemic levels.
“The increase is not bad, but not as significant as before. Independent cinemas, not networks overnight, can average Rp. 25 million – Rp. 30 million. Now that it first opened in October, Rp. 2 million a day is difficult. Now it’s over Rp. 5 million, Sunday nights Rp 10 million, but it hasn’t recovered like it used to,” Djonny told CNBC Indonesia early last month (9/6).
The closure of the CGV cinema has the potential to affect the company’s financial performance, which has fallen from last year.
Throughout 2020, the issuer managing the CGV cinema reported a fantastic loss of IDR 445.83 billion from the position in 2019 before the pandemic hit where BLTZ was still able to record a net profit of IDR 83.34 billion.
The closing of cinemas which was carried out in 2020 made BLTZ’s revenue slump to Rp. 255.83 billion, down 81.91% from 2019 where the company’s revenue reached Rp. 1.41 trillion.
The decline occurred in the company’s various business lines, from the cinema business to revenue from advertising.
The company’s cost of revenues also swelled beyond the operating revenues earned or reached Rp 323.19 billion. In addition, liabilities increased significantly by up to 143% from the original Rp. 673.49 billion, which swelled to Rp. 1.63 trillion.
The first quarter of 2021 was not much different, the company still experienced a decrease in annual revenue, down to IDR 27.33 billion compared to the first quarter of 2020 before the Covid-19 virus started spreading, amounting to IDR 232.17 billion.
Cost of revenue also still exceeded the company’s original income so that BLTZ recorded a net loss of up to IDR 83.33 billion, an increase from the same period the previous year with a net loss of IDR 54.30 billion.
As quoted from the consolidated report for the first quarter of 2020, BLTZ management said that they are currently implementing several efforts to deal with the impact of COVID-19, starting from increasing the efficiency of the company’s operational costs to negotiating with landlords to reduce rental costs.
Management also cannot predict the intensity that will arise and how long this condition will last.
“The duration and intensity of the impact of the COVID-19 pandemic depend on future developments which cannot be estimated reliably at this time. Management will closely monitor developments from the COVID-19 pandemic, and will continuously evaluate the impact on business, financial position and the operating results of the Group.” wrote the management, quoted by the disclosure of information.
In trading Tuesday (13/7) at 10.23 WIB, BLTZ’s share price fell 0.72% to a level of IDR 2,740/share with a market capitalization of IDR 2.39 trillion. Within a month this stock has weakened 28.65% and since the beginning of the year has corrected 8.36%.
Based on index data, apart from BLTZ, there is currently one issuer in the cinema and film sector, PT MD Pictures Tbk. (FILM), producer of sequels for Habibie & Ainun to Danur.
Referring to the 2020 financial report, FILM’s revenue fell 51% to IDR 122.37 billion from 2019 of IDR 250.25 billion. The company recorded a net loss of IDR 56.96 billion from a 2019 net profit of IDR 60.96 billion.
“The Covid-19 outbreak has resulted in a global and domestic economic downturn which has subsequently affected the Group’s operations. Management will monitor the developments of the pandemic and continue to evaluate the impact on future sales, operating results and overall financial performance,” FILM’s management wrote.
This issuer, owned by film producer Manoj Punjabi, was finally able to record a performance recovery in Q1. In Q1-2021, sales rose to IDR 60.96 billion from the same period in 2020, which was IDR 29.36 billion. Net profit reached IDR 18.14 billion, from a Q1-2020 net loss of IDR 8.99 billion.
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