China-Singapore Jingwei Client October 30th (Zhao Jiaran) On October 29th, Wanda Films (002739, shares) announced the third quarter report of 2019. The company's third-quarter operating income was 4.030 billion yuan, basically the same as the same period last year; attributable to the listing The company's net profit was 305 million yuan, a decrease of 45.98% from the same period last year.
In the first three quarters, Wanda Cinema’s revenue was 11.594 billion yuan, a year-on-year decrease of 7.45%, and its net profit was 829 million yuan, a year-on-year decrease of 57.25%. The net profit attributable to non-deductibles was 772 million yuan, a year-on-year decrease of 34.59%. As of 13:00 on October 30, Wanda Films reported 15.02 yuan per share, a decrease of 1.05%, and a market value of 31.2 billion yuan.
Wanda Film’s stock price trend screenshot source: wind
Specifically, the company’s prepayments rose by 67.53%, mainly due to the addition of new projection video projects and the increase in prepayments for the renovation of the studios; the decrease in net cash flow from operating activities Nearly half, mainly due to the increase in prepaid film and television production costs; the balance of long-term loans was 2.521 billion yuan, a year-on-year decrease of 32.93%, mainly due to the increase in long-term loans due within one year.
Regarding the net profit in the first three quarters, Wanda Films explained in the performance forecast that the company’s holding subsidiary Wanda Films had more major investment and control films during the same period last year, and the film production industry had uneven performance during the year. During the reporting period, Wanda Films and Television controlled fewer films and some of the box office was below expectations; in the first three quarters, the national box office and the number of movie viewers both fell year-on-year, and the industry's gross profit margin declined as a whole. cut back.
On the other hand, the company said that due to the influence of the game industry and version number application control, during the reporting period, Wanda film and television game publishing and related business revenue fell year-on-year, resulting in significant changes in the company's performance. In the semi-annual report of
, the company mentioned that due to the inherent characteristics of the industry and products, Wanda Films faces a certain risk of performance fluctuations. For the film business, on the one hand, its performance is significantly affected by the schedule. After the Spring Festival, summer, National Day, and Lunar New Year films, movie box office revenue will peak; on the other hand, the market performance of a single film Differences can also cause fluctuations in performance.
In May 2019, Wanda Films completed its asset reorganization and Wanda Films became its holding subsidiary. The company's main business has also expanded to the investment, production and distribution of movies and TV series, as well as the distribution and operation of online games. Wanda Films stated in its semi-annual report that due to the large scale of Wanda Films, there is a certain degree of uncertainty about whether the company and Wanda Films can be successfully integrated, and the synergy effect may not be fully reflected in the short term.
In July, Wanda Films issued an announcement stating that in order to meet Wanda Films’ business development funding needs, it is expected to provide Wanda Films with a total guarantee of no more than RMB 1 billion in 2019.
Minsheng Securities analyzes that it is expected that the recovery of the film industry in the medium and long-term industry and the clearing of small and medium-sized theaters will drive the overall single-screen output of the industry to rise, but the industry will still face fierce competition, declining single-screen output, and total movie market box office in the short term. Lower growth rate and other pressures.
Western Securities said that the number of theaters in the industry in September is expected to increase by more than 9% year-on-year, and the growth rate will continue to slow down. The demand side still has at least double the box office space in the long run. The number of screens is expected to grow in single digits in 2020. If the box office growth rate exceeds the growth rate of screens, the industry will usher in an inflection point of improvement in supply and demand. (Zhongxin Jingwei APP)
(The views in the text are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)
