Wanda Cinema's net profit last year was 1.186 billion yuan, accounting for a significant increase in non-box office revenue

Wanda Cinema announced its annual report on March 30. In 2015, the company achieved operating income of 8 billion yuan, a year-on-year increase of 49.85%; and achieved net profit of 1.186 billion yuan, a year-on-year increase of 48.05%. Commodity sales revenue was 923 million yuan, accounting for 11.53%, an increase of 46.22% over last year.

Wanda Cinema announced its annual report on March 30. In 2015, the company achieved operating income of 8 billion yuan, a year-on-year increase of 49.85%; and achieved net profit of 1.186 billion yuan, a year-on-year increase of 48.05%. At the same time, the company plans to distribute a cash dividend of 2 yuan (including tax) for every 10 shares to all shareholders.

During the reporting period, Wanda Cinema achieved box office of 6.3 billion yuan, a year-on-year increase of 49.6%, and 151 million movie-goers, a year-on-year increase of 48.9%. Among them, the domestic box office was 6.01 billion yuan, with 147 million movie-goers, the overseas box office was 288 million yuan, with 4.53 million movie-goers. The domestic market share was 13.6%, the Australian market share was 19%, and the number of members exceeded 50 million. Wanda Cinema has ranked first in the country in terms of box office, movie-goers, and market share for seven consecutive years.

The report shows that in 2015, 43 new theaters with 391 screens were opened in China, and 15 theaters with 126 screens were added in China through mergers and acquisitions. Wanda Cinema has reached a strategic cooperation with Canadian IMAX Company. As of December 31, 2015, the company has put into operation a total of 146 IMAX screens, making it the theater with the largest number of IMAX screens in the country. In addition, Wanda Cinema has launched 48 X-land giant screens independently developed and integrated leading film projection technology, and introduced IMAX laser digital projection system, Christie 6P laser projection system, 4D projection system, SCREEN X projection system and REALDUltimate Screen. Advanced projection systems such as the ultimate screen.

In terms of main business, box office revenue was 6.388 billion yuan, accounting for 79.84%, an increase of 46.44% over last year; compared with the mature and stable Australian market, the domestic film market contributed the vast majority of box office growth, mainly benefiting from:

(1) The box office dividend brought by the rapid growth of China's movie box office market-in 2015, the box office of Chinese movies exceeded 44 billion yuan. Wanda, which has the largest number of theaters in China, naturally rose;

(2) The number of Wanda Cinema theaters continues to grow. As of the end of 2015, Wanda Cinema had 292 theaters opened, and the total number of screens was 2557.

(3) Theater membership is growing rapidly and customer unit price consumption is high. Compared with 26 million in 2014, as of the end of 2015, the number of Wanda Cinema members has exceeded 50 million, and compared with the average domestic average of 1.6 movie-viewing, the number of Wanda Cinema members is 6. The continued expansion of IMAX, Dolby and X-land has also increased the unit price of consumption.

It is noteworthy that the proportion of other non-box office revenue has increased significantly. Revenue from sales of other commodities was 923 million yuan, accounting for 11.53%, an increase of 46.22% over last year. Box office revenue, which contributes nearly 80% of revenue, has operating costs as high as 4.989 billion yuan, accounting for 91.47% of the cost; while the cost of commodity sales is only 288 million yuan, accounting for 5.49%. With the introduction of Wanda Cinema's own derivative brand "Derivative π" in December last year and the goal of "no less than 50" in 2016, what will make Wanda Cinema make a lot of money will not only be "popcorn".

Cinema advertising revenue is the third largest revenue for Wanda Cinema, with revenue of 463 million yuan in 2015, accounting for 5.79%, a year-on-year increase of 75.30%.

The rapid growth of advertising revenue and product sales revenue directly pushed up Wanda Cinema's profit margin, making its net profit margin after deducting non-profit margins reach 54.96%, which was nearly 5 points higher than the revenue growth of 49.85%.

In September 2015, Wanda Cinema acquired Muwei Fashion for 1.2 billion yuan, and its patch advertising, film investment and promotion business began to start.

Buy, buy, buy: There is a long list of scandals, but the most important thing to be concerned about is its own reorganization.

As early as in its 2014 annual report, Wanda Cinema began to "take the trouble" to talk about the problem of insufficient concentration in the domestic cinema market. Compared with the three major theaters in the United States, there are 48 theaters in the country, and the concentration of theaters is obviously insufficient. Therefore, since mid-2015, Wanda Cinema began to compete for mergers and acquisitions in the cinema market:

on June 2,2015, Wanda Cinema, which was suspended for three weeks, released the final acquisition target, which was Hoyts Group, the second largest cinema operator in Australia. The purchase price is 2.246 billion yuan. The latter has 44 theaters and more than 400 screens in Australia and New Zealand.

On June 26, 2015, Wanda Cinema acquired 14 theaters and more than 100 screens owned by Shimao Cinema for 1.1 billion yuan.

Relying on mergers and acquisitions, Wanda has successfully achieved a leap forward in the speed of theater expansion. If it still set a target of 40 in 2014, by 2015, Wanda Cinema had set a target of 150 in 2016.

According to foreign media reports, Wanda Group will have further acquisitions, including Mars Film Group, Turkey's largest theater chain, which has more than 600 screens, and the pan-European European Odeon/UCI Group is also among the acquisitions. The company's number of screens in the UK, Germany, Spain and Italy has reached 2200... Of

course, regarding mergers and acquisitions, the market is most concerned about the injection of Wanda Group's film and television assets. In 2016, Wanda Theater will have an explanation.

Products sold are not only popcorn, but also derivatives will increase.

In 2015, sales revenue of commodities including popcorn reached 923 million yuan, contributing 11.82% of the annual revenue.

Considering that Wanda only established "Derivative π" at the end of last year, and Wanda's merchandise sales revenue last year reached 631 million yuan, it is estimated that the revenue of 923 million yuan still mainly comes from "popcorn".

In December 2015, the company's own derivatives brand "Derivative π" was officially released, and the first batch of 11 derivative stores were officially put into operation; the company cooperated with Shiguang to establish a derivatives sales experience center, and established strategic cooperative relationships with large brands such as Hasbro, ZINC China, SNAPCO, etc., intellectual property authorizers to promote the development of derivatives business.

As early as 2014, Wanda's annual report, the company launched its self-operated catering brand "ONE" and its derivatives store "Wanying Accompanying" for the first time, making an attempt to expand its self-operated cinema business. The company also cooperates with upstream derivatives research and development companies to obtain authorizations and organize hot sales of derivatives. After a year, the overall situation of the derivatives business seems to have been established, and now it is just waiting to be collected.

In September 2015, Wanda Cinema acquired a 20% stake in Shiguang. com, aiming to explore the "member + derivatives" model based on Shiguang's online movie derivatives store and Wanda's offline channels and deeply explore the value of members. From this point of view, the proportion of subsequent derivatives in Wanda Cinema and the profit growth they bring will surely be worth looking forward to.

Remember Muwei Fashion? The layout of the entire industry chain has long been opened?

In this financial report, patch advertising, film investment and promotion have become a main category of Wanda Cinema as a whole.

In June 2015, as Muwei Fashion was acquired by Wanda Cinema for 1.2 billion yuan, Wanda Cinema's patch advertising, film investment and promotion business began.

Earlier, Wanda Cinema has repeatedly emphasized that it is just a theater integrated platform. When acquiring Muwei Fashion, it also emphasized that it is an integrated marketing company. Although this company has invested, it has indeed invested in "Terminator 5" and "Mission Impossible 5".

According to previous introduction by Wanda Cinema, in 2014, Muwei Fashion participated in the investment of "Teenage Ninja Turtles" and "Interstellar", enjoyed global box office sharing rights, and assisted in the promotion of "Transformers 4" and "Teenage Ninja Turtles" in China. In 2015, Muwei Fashion participated in investing in Hollywood films such as "Terminator 5" and "Mission Impossible 5", and participated in the promotion of the films in China. I wonder how much of this investment income accounts for of the 61.58 million yuan revenue from patch advertising, film investment and promotion?

Now it seems that this is just the beginning of Wanda's larger layout. Wanda Cinema has suspended its trading in planning to acquire Wanda Group's film and television assets. The industry generally expects that Wanda will inject "Wanda Pictures" into it, and the outside world's speculation about Wanda Pictures is becoming increasingly popular.

With the development of Wanda Cinema Line in theater mergers and acquisitions, derivatives development, and theater advertising, as well as breakthroughs in pasting, film investment and promotion businesses, the goal of opening up upstream and downstream businesses and achieving the development of the entire industry chain is gradually approaching. Show. According to the financial report, it is a "world-class platform-based and eco-type entertainment company."

[Original Announcement]

Wanda Cinema: 2015 Annual Audit Report

Wanda Cinema: 2015 Annual Report

Wanda Cinema: 2015 Annual Report Summary

Editor: vian