Major Cineplex Group Plc, Thailand's largest cinema operator, is looking to expand further in Indochina as the region's entertainment industry develops.
Major Cineplex's Mr Vicha (centre) and partners Sila Chy Thmor (left) and Raam Punjabi.
"Cambodia, Myanmar and Laos are fresh entertainment markets, and we should take this opportunity to establish our presence in these countries before our rivals," said Major Cineplex chairman Vicha Poolvaraluck.
Major's goal is to introduce 100 screens in good locations over the next five years, mostly in Cambodia, Myanmar and Laos, where consumer demand is strong but modern cinemas are in short supply.
The SET-listed cinema chain has formed a partnership with Platinum Cineplex, a leading Cambodian cinema operator, to set up a joint venture called Major Platinum Cambodia to run cinemas under the Major Cineplex brand. Major holds a 70% stake in the venture and the Cambodians 30%.
Major Cineplex's first foreign branch officially opened on Monday in the heart of Phnom Penh, with 7,000 square metres of space in a shopping mall owned by Japan's Aeon.
Mr Vicha said 150 million baht was spent on the branch, comprising five standard cinemas, one VIP cinema and one 4D cinema (1,560 seats in all).
The venture is forecast to break even within three years as 700,000 tickets are sold annually.
The company also expects to generate some sponsorship revenue with Cellcard, a leading telecom operator in Cambodia.
Tickets cost US$4 per seat for 2D movies, $5 for 3D movies and $10-12 for the VIP cinema, similar to prices in Bangkok and other Asean countries.
Some 2 million people live in Phnom Penh, with about 50% in the upper-middle-class bracket.
Moreover, a rising number of expats live and work in the Cambodian capital.
Major has set a 500-million-baht budget for a five-year expansion in Cambodia, to include two or three more cinemas in Phnom Penh and Siem Reap.
The five-year goal is to attain a market share exceeding 50% and amass 40-50 screens.
Thailand, meanwhile, remains Major's core revenue generator with a target of 1,000 screens by 2020, up from 700 now.
The company aims for revenue growth of 10% to 8.4 billion baht this year.
Shares of MAJOR closed Monday on the Stock Exchange of Thailand at 18.90 baht, up 10 satang, in trade worth 36.4 million baht.
