SET-listed Major Cineplex Group Plc, Thailand's biggest cinema chain, is expanding further in Cambodia with plans for a second project in 2018.
The new cinema will be developed under a partnership with Japan's Aeon Group. Located at Aeon Mall II in Pong Peay, the project will require an investment of 200 million baht and feature 10 screens.
Chairman Vicha Poolvaraluck sees high potential in Pong Peay's high population density and many residential projects. The locality is a 30-minute drive from Phnom Penh airport.
Major first entered Cambodia in 2014 with the opening of a cinema branch in Phnom Penh, also in partnership with Aeon.
The Japanese retail group has found success operating a shopping mall in the Cambodian capital.
Mr Vicha said Aeon had always supported Major and treated the Thai firm more like a partner than a tenant.
"I believe that working with Aeon Group will help us create many more successful projects in Asean in the future," he said.
The first cinema branch with seven screens at Aeon Mall in Phnom Penh sold 1 million tickets and generated 175 million baht in revenue last year.
Major expects the second cinema branch to generate similar revenue after it opens in the second quarter of 2018.
Major's goal is to add 100 screens in popular locations abroad over the next five years, mostly in Cambodia, Myanmar and Laos, where consumer demand is strong but modern cinemas are in short supply.
The company aims for revenue growth to top 10% and expects 2016 revenue to reach 10 billion baht.
Major has 92 cinemas with 606 screens, of which 594 are in Thailand, seven in Cambodia and five in Laos. Of the screens in Thailand, 253 are in Bangkok and 341 in other provinces.
Makoto Yajima, managing director of Aeon Mall Cambodia, said continuous development in Pong Peay created a need for products and services, so Aeon decided to invest in Aeon Mall II there.
Aeon has put forth a strategy to promote business development in Southeast Asia and China.
The retail giant has opened two malls in Vietnam and one in Cambodia since 2014. Plans call for opening a new project in Vietnam this year and another in Cambodia in 2018.
MAJOR shares closed yesterday on the Stock Exchange of Thailand at 28.25 baht, down 25 satang, in trade worth 34.4 million baht.
