China’s Dalian Wanda group says it will continue its transformation into a sports, entertainment and tourism conglomerate as it is poised to be included in the ‘Fortune Global 500’ list for the first time.
The list, published annually by Fortune magazine, ranks the world’s richest companies. Wanda will likely climb the ranking if it continues to outgrow others.
“More expansions, more acquisitions await,” Wanda said in a statement. It enters the list at #385.
Wanda, which is poised to spend $30 billion on acquisitions this year, recently announced that it is to pay close to $1.1 billion for leading European cinema chain Odeon / UCI. Wanda has also been reported as the sole remaining bidder for a 49% stake in Paramount Pictures, which may be sold by U.S. entertainment conglomerate Viacom.
Wanda has its roots in property development, but now counts commercial property, finance and culture as its three core businesses. In a statement on Wednesday, Wanda said that it expects the service side of its business to account for two thirds of revenue and net income by 2017, up from 40% in 2015.
The company’s overseas revenue in the first half of 2016 represented 15% of group revenue, at $2.64 billion (RMB17.69 billion.) Overseas income is forecast to reach 30% of the total by 2020.
Figures are incomplete as the company is privately held, though it owns a number of listed subsidiaries including AMC, Wanda Cinema Line and Wanda Commercial Properties.
Revenue from Wanda’s ‘Cultural Industry Group’ climbed by 57% in the first half of 2016 to reach $4.32 billion (RMB29 billion.) By 2020, the group forecasts the segment’s revenue as reaching $22.4 billion (RMB150 billion,) up from $7.66 billion (RMB51.3 billion) in 2015.
It says that its film arm is “already the biggest in the world (and) is becoming a global giant in worldwide distribution.”
Wanda Tourism is poised to become the world’s largest by 2020, with an annual income of $14.9 (RMB100 billion,) it said. And Wanda Sports Holdings “is planning to bring 10 global sports events to China by 2020.” It recently announced a new annual soccer competition to be held in China with the backing of the sport’s governing body FIFA.