Chapter 435 Who is the big boss?
Arthur has always been instilling his own investment preferences in investment consultants such as Angela. He is very fond of projects with stable performance, guaranteed returns, and low risks, and able to continuously obtain "after-sleep income".
Even if the funds for the early investment will be very high at the beginning, as long as these early investments can be recovered within 10 years, the rest will be the so-called "net income"!
Cinema chains can continuously generate safe, lasting and stable income, which meets Arthur's long-lasting income standards!
Cinemas have always been the dominant industry in the entire film industry. And large film production companies support cinemas because everyone wants their movies to be exclusively released on the big screen for a while.
"Boss, this is Odion's financial report. Among them, you can see that 90 million movie tickets are sold every year. The main income comes from the box office revenue of movie screenings, product sales, advertising sales, equipment sales, etc. The sales and sales ratio of various departments are as follows, and the box office revenue remains at a level of 60% to 65%.
Although online streaming media or other service models bring challenges to the development of theaters, I think the advantages of theaters are irreplaceable in the short term. I think at present, theaters still have a lot of room for upgrading, but they only need more refined operation strategies.
If we position the theater as a theater that only provides movie viewing, then we will be constantly threatened by other forms of entertainment or replaced by other peers. If we want to run the theater well, I think the value of the theater is to provide our users with an excellent social venue."
Arthur frowned and nodded in response to Angela's suggestion, deeply agreeing that why the small goal of the Celestial Dynasty built the cinema in his own shopping mall, the most important thing is to increase the retention time of customers.
"Indeed, if you can, build the theater chain into a composite cultural paradise where people can gather together to experience various types of social entertainment needs, from movies, music, performances, games to food and beverages.
Through these differentiated and specialized services, the audience can increase their stay time in the theater, and these waiting times are another excellent sales opportunity for the theater.
At the same time, the online ticketing system can be upgraded to attract moviegoers through targeted marketing strategies for young audiences."
Thinking of his movie-watching experience in his previous life, whether it is the discounted price of tickets purchased on the app or the behavior of buying popcorn and drinks, Arthur also told them about these good methods.
And Angela couldn't help but lit up her eyes when she looked at Arthur, and she continued to talk about what she had planned for the whole night last night.
"I looked at most of the theaters in the Odion Group and found that there are many old and difficult-to-profit theaters. For these theaters, my advice is to not close the poorly managed theaters, but to bring them back to the audience's horizon through renovation and renovation. By equipping with larger screens, better seating systems and impressive entrance halls, the audience's expectations for movies are enhanced."
"Tsk tsk, that costs a lot of money." Arthur said helplessly.
"Boss, money must be spent. Moreover, we must not only spend money on repairs, but also raise more money, because once we enter the theater industry, we can only move forward and not stay still." Angela's beautiful eyes flashed sharply, and she said with a firm tone.
" Raise more funds? Are you talking about continuing the merger and acquisition?" Arthur raised his eyebrows slightly and asked with some uncertainty.
"Yes, although the British movie box office has maintained an upward trend for three consecutive years, the growth rate is slow, and compared with the early explosive growth, the growth of European films has reached a stagnation. This is the main driving force that drives us to expand.
Whether in the UK or North America, the theater market is a mature market, very stable and unbreakable. According to the report of industry research agency iHS, the global average annual viewing data in 2009 showed that Iceland was about 4.3 times per person, Singapore was 3.9 times per person, Australia was 3.7 times per person, the United States was 3.5 times per person, and the United Kingdom was 3.3 times per person.
Although emerging markets such as Central Europe, Eastern Europe and Asia have great potential to bring high growth, in my opinion, mature markets such as the United Kingdom, Western Europe, and North America still have their development value.
For cinemas, mergers and acquisitions or self-built are multiple-choice questions that many cinemas face. Compared with the high land prices and site selection problems faced by the construction of new cinemas, acquiring existing cinemas is a way of rapid expansion. Therefore, choosing to acquire existing cinemas to achieve rapid expansion is our only way out in the future.
My suggestion is to choose to enter the local market by acquiring leading theaters, which eliminates the time to explore and polish in the local market, and at the same time injects the unique brand management characteristics we have established. A unified brand will provide standardized output of business strategies."
"Haha, I think since you have already thought of your future expansion strategy, you should have a target you like, right?" Arthur still has some understanding of his investment and financial advisor.
To be honest, Angela's talent and ability are really impeccable. If it weren't for her previous career failure, her Ye Zi's ethics were questioned, which led to her being "labeled" in the investment world and isolated, he might not have been able to earn her a cheap price for the advisory group.
picturehouses, one of the most successful art theater brands in the UK, has more than 20 art theaters, some of which have been renovated and renovated by old cinemas, and also own an art film production company..."
"And there is a film production company? How much does it cost?" Arthur's eyes lit up slightly and he asked the question he was most concerned about.
"Haha, I estimated that it only costs about 30 million pounds to eat it!" Angela smiled confidently, "But we should move faster to acquire it, because Movie World Group has also set its sights on it, so I think we can acquire picturehouses first and then Odion Theater."
"Movie World Group? What's the origin?" Arthur asked with a slightly raised eyebrows.
"The Movie World Group was founded in the UK in 1995 with the support of a private equity fund. In May 2007, it was listed in London and became the first listed theater company in the UK. It is currently ranked third, with great ambitions and has been conducting mergers and acquisitions and expansions.
It is worth noting that in the past, only the six major Hollywood producers in the United States had the ability to distribute movies globally. If we complete the integration of Odion theaters and acquire a North American theater, we can become the only non-American company with the ability to distribute movies globally in the future by mastering terminal channels." Angela looked at the young boss with extremely bright eyes and said the ultimate goal of his plan.
Chapter completed!