RISING Prices, TIGHT Profits
He reacted to viewers ‘ concerns about rising ticket prices by pointing out that users must pay mounting rent and staff fees.  ,
About half of the box office revenue goes to the theater, so the margin is strong, he said. ” In truth, if you’re not selling compromises, you probably didn’t make or produce very much money”.
In order to improve its financial status, mm2 Asia is in talks with several loans and creditors regarding a short-term plan to cancel debts as it becomes due. Additionally, increasing merger and acquisition activity indicates renewed interest in the field, and a partial or complete divestment of its theatre business is on the table.
Despite pessimism about mm2 Asia’s acquisition of Cathay, Mr Ang remains decisive.
” When we acquired the theater, they were profitable”, he said. ” If we knew that COVID-19 was coming, then we probably wouldn’t have done it … but things happened and we have to work hard to resolve the problem”.
While right-sizing and possible business mergers may become necessary, he is comfortable in movie’s staying power.
According to Mr. Ang, individuals aren’t ready to give up on the unique experience it offers. As the number of theaters falls, malls with venues will gain a competitive edge in prospect, he added.
More important, he will never give up without a struggle.
” We’ve been managing ( the situation ) for the last few years, and we will continue to”, Mr Ang said. ” At this point in time, we still want to drive on”.