Chinese entertainment giant Maoyan has reported a loss of RMB 430.7m ($62m/£47m/€52m) in its interim financial results for the first half of 2020, down 90 per cent from the same period last year.
The company, which is China’s leading online ticketing provider, saw revenues plummet from RMB 1,984.6m in the first half of 2019 to RMB203.1m this year, largely due to the closure of cinemas in the country from late January until July due to COVID-19.
Its gross loss reached RMB 20.6m in contrast with gross profit of RMB 1,186.8m last year, though expenses from sales and marketing decreased some 72 per cent this year.
In the filing, Maoyan recognised the “heavy blow” dealt to the Chinese and global movie industries by the COVID-19 pandemic, stating it has “proactively taken innovative measures to mitigate the negative impact of the pandemic, and made a meaningful contribution to the revival of the movie industry”.
Maoyan processed refunds for five million tickets in January when cinemas closed ahead of the crucial Chinese New Year holiday box office period, equating to more than $29m.
Despite the downturn, the company says that “the Chinese movie industry has shown remarkable resilience” and that, with box office now growing steadily, there is “strong confidence” for recovery.
Within the first week of reopening, Maoyan claims that weekly box office revenues surpassed the RMB 100m mark.
“We firmly believe that the winter of COVID-19 pandemic will pass and that the spring of entertainment industry revival is sure to follow,” the firm added.
It added that it plans to upgrade its content producing capabilities and expand its online business model moving forward.
Last month, Maoyan announced it will enhance its presence in the music industry by cooperating with Tencent Music Entertainment Group’s Uni Chart.