Chinese entertainment and ticketing platform reports 90% fall in revenue for first six months of 2020
Chinese entertainment and ticketing platform Maoyan has reported losses of 430.7 million yuan (US$62 million) in its interim financial results for the first half of 2020, with revenue falling 90% year-on-year.
The company, China’s leading online ticketing provider, said revenue for the six months was 203.1 million yuan, down approximately 90% from 1,984.6 million yuan earned 12 months ago, attributing the decrease to the COVID-19 pandemic which, the company advised “dealt a heavy blow” to the Chinese and global cinema industry during the first half of 2020.
Overall, Maoyan’s gross loss reached 20.6 million yuan in contrast with gross profit of 1,186.8 million yuan last year.
Commenting on the results, a Maoyan statement advised that it has “proactively taken innovative measures to mitigate the negative impact of the pandemic, and made a meaningful contribution to the revival of the movie industry”.
The company also noted that as cinemas in China started to close at the beginning of the Coronavirus outbreak during the Chinese New Year holiday, it had processed refunds for five million tickets.
Despite the downturn, the company says that “the Chinese movie industry has shown remarkable resilience” and that, with box office now growing steadily, there is “strong confidence” for recovery.
With cinemas in mainland China having resumed operations in late July, the company reported that daily box office revenues have been growing steadily. Weekly box office revenues surpassed the 100 million yuan mark within the first week of reopening.
Looking forward, Maoyan said it plans to upgrade its content, enhance its internet-native advantages, expand its online business model, online-offline promotion and distribution services, strengthen its ticketing platform, and deliver more supply chain financing solutions and related services.
Maoyan added “we firmly believe that the winter of COVID-19 pandemic will pass and that the spring of entertainment industry revival is sure to follow.”
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