Committed to Broaden Public Access to Movie Theaters, Cinema XXI is Ready to be Listed on Indonesia
- A research by Euromonitor International in early 2023 revealed that 76% of Indonesians go to the cinema at least once a month and 62% of them consider movie-watching as one of their main social activities with family and friends.
- Based on the same research, the potential growth for number of screens is still very large since Indonesia only has 7.6 screens per one million population.
- Cinema XXI as a leader in the cinema industry has presented 1,216 screens in 225 locations spread across 55 cities in Indonesia by the end of 2022.
JAKARTA, July 7, 2023 — PT Nusantara Sejahtera Raya Tbk, known as Cinema XXI will strengthen its position and commitment as the largest cinema chain in Indonesia by becoming a public company listed on the Indonesia Stock Exchange (IDX) with a solid financial profile.
Cinema XXI will offer a maximum of 8,335,000,000 (eight billion three hundred thirty-five million) new shares issued from the Company's portfolio or 10.0% of the issued and paid-up capital after the Initial Public Offering (IPO). The initial offering period of PT Nusantara Sejahtera Raya Tbk takes place from July 10 to 14, 2023. The price range itself is between Rp270 to Rp288 per share with a target fund from this IPO is as much as Rp2.4 trillion. Cinema XXI has appointed PT Indo Premier Sekuritas, PT J.P. Morgan Sekuritas Indonesia, PT Mandiri Sekuritas, and PT UBS Sekuritas Indonesia as the joint-lead underwriters.
"The cinema industry in Indonesia has experienced strong growth after the Covid-19 pandemic. The growth is reflected in the increased enthusiasm of Indonesians to return to watching movies in cinemas which have gradually recovered throughout 2022 until now. To continue this positive trend, Cinema XXI deciced to make IPO as one of our strategic steps. This corporate action will strengthen Cinema XXI's commitment to always provide the widest possible access for people to watch their favorite movies, including opening new cinemas in potential locations throughout Indonesia," said President Director of PT Nusantara Sejahtera Raya Tbk, Hans Gunadi.
Cinema XXI will utilize around 65% of the IPO proceeds for capital expenditure to further strengthen its cinema networks in Indonesia. This will be carried out through new cinema opening, purchasing the latest technology of image and sound projection equipment, and other supporting infrastructure to improve the quaility of existing cinemas that will eventually enhance audience comfort. Then, about 15% of the IPO funds will be used for working capital and the remaining 20% will be allocated to repay Company's short-term liabilities.
"We are confident on the growth of Indonesia's entertainment industry, especially the cinema industry as its subsector. The growth is supported by strong movie-going culture and huge potential growth in the number of screens in Indonesia. In addition to that, most of Cinema XXI theaters are located in well-known shopping malls with high footfall that supports our business growth," Hans revealed.
A research by Euromonitor International in early 2023 revealed that 76% of Indonesians go to the cinema at least once a month and 62% of Indonesians consider movie-viewing as one of the main social activities, such as spending time with family or friends.
Furthermore, Euromonitor also noted that Indonesia has a large and growing domestic film industry. The contribution of domestic films to Country's gross box office (GBO) in 2023 is projected to be 51%.
Not only is the domestic film industry continuing to grow, the number of Indonesia's screen growth potential is also still very large. Based on Euromonitor research, developed countries have an average of 84.3 screens per one million population (2022 estimation), while Southeast Asia has an average of 30.2 screens per one million population. On the other hand, Indonesia only has 7.6 screens per one million population with the total screens of all operators in Indonesia. By the end of 2022, the number of screens in Indonesia is estimated around 2,107 screens.
From the financial side, Cinema XXI recorded a solid performance in 2022, with Rp4.40 trillion revenue, which increases from Rp1.28 trillion in 2021. The revenue in 2022 was supported by cinema ticket sales by 61%, food and beverages sales by 33%, advertising by 3% and digital platform by 3%.
"Thanks to the hard work and commitment of the entire Cinema XXI family, financial performance experienced a strong recovery in revenue towards pre-Covid-19 levels. The Rp4.40 trillion revenue in 2022 is equivalent to 64% of Rp6.89 trillion revenue in 2019, while Cinema XXI only started to operate at full capacity in May 2022," Hans concluded.
With this solid performance, Cinema XXI scored a net profit of Rp506 billion in 2022, from a loss of Rp354 billion in 2021. Cinema XXI's EBITDA is also getting stronger at Rp1.44 trillion in 2022, from Rp329 billion in 2021.
Cinema XXI--operated under the auspices of PT Nusantara Sejahtera Raya Tbk is the largest cinema chain in Indonesia with 35 years of experience in the movie exhibition industry. Cinema XXI is committed to always providing the best quality movie-viewing experience and convenience for Indonesian public. As of the end of December 2022, Cinema XXI presented 1,216 screens in 225 cinema locations spread across Indonesia.
Cinema XXI is committed to continuously providing uncompromised, best quality entertainment at the affordable prices. In 2006, Cinema XXI launched m.tix to facilitate the movie tickets ordering through text messages which was later developed into a mobile-based application. In 2012, Cinema XXI presented a movieviewing experience with revolutionary technology, the IMAX theater. To better improve the services given to the customers, Cinema XXI has also equipped the theaters with the latest “Dolby Atmos” audio system.
Not only a place to watch movies, Cinema XXI is also a second home for people to spend time with their family and friends. Cinema XXI presents an unforgettable movie-viewing experience for today and tomorrow. For three consecutive years in 2017, 2018, 2019 Cinema XXI has been awarded the "World Branding Award" at Kensington, London as the Best Brand in the Entertainment Cinema Category. In early 2019, Cinema XXI was also awarded as "Millennials Top Brand Awards" by one of the preferred media of Indonesia's young generation as the first choice of millennials for the category of leading cinema network in Indonesia. It doesn't stop there, regardless of the Pandemic conditions in 2020, Cinema XXI was honored as "Industry Champion of the Year" by Asia Corporate Excellence and Sustainability (ACES) Awards.
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For more information, please contact:
Corporate Communication & Brand Management
PT Nusantara Sejahtera Raya Tbk (Cinema XXI)
Email: Corporate.communications@cinema21.co.id