Box office rebounding as Cathay Cineplexes says future far from gloomy

Cathay Cineplexes said its future is far from gloomy while a proposed deal with Kingsmead Properties was put on hold.

Speaking to AsiaOne, a spokesperson said Cathay is optimistic that the cinema business is picking up.

December was the best month for ticket sales at Cathay Cineplexes since the start of the pandemic, thanks to Marvel superhero movie Spider-Man: No Way Home.

The film grossed more than $10 million in Singapore, and was the highest-grossing movie in 2021, reported The Straits Times.

"Box office takings for Spider-Man: No Way Home came very close to what Avengers: Endgame brought in pre-pandemic. This is despite seating capacity being limited to 50 per cent currently," said the spokesperson of the positive trend. 

"This shows that Singaporeans are still very keen on catching their favourite movies in the theatres, and we are excited about the line-up of films set for release this year." 

Titles slated to be released include local director Jack Neo's Ah Girls Go Army, The Batman, Fantastic Beasts: The Secrets of Dumbledore and yet another Marvel superhero movie, Doctor Strange in the Multiverse of Madness.

It was announced on July 27 last year that Cathay's parent company mm2 Asia and local investment firm Kingsmead Properties had entered into an agreement for Kingsmead to purchase more than 80 per cent of Cathay's cinema business for $84.8 million.

The deadline for the deal lapsed on Dec 31, 2021, but Kingsmead converted its $6 million deposit into mm2 shares at 8 cents, according to a statement by mm2 Asia on Jan 3.

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Kingsmead stated that the decision to hold back on the purchase was due to concerns over the pandemic, aggravated by the new Omicron variant.

Said the company: "Whilst the cinema business in Singapore and worldwide has shown strong turnaround in recent months, it is unfortunate that the Omicron uncertainty has dampened investing appetite for the moment. We hope to be able to revisit the acquisition again, and hopefully soon enough, when the Covid situation further eases."

Cathay's spokesperson emphasised that the proposed sale of ownership and temporary suspension of the deal would not have any impact on cinema operations as there is "no immediate need" for the sale to proceed.

"[We] remain committed to deliver the same high level of service and programming."

editor@asiaone.com