You will be redirected back to your article in seconds

Wanda Reports Nearly 11% Revenue Drop in 2017

Dalian Wanda reported a nearly 11% drop in revenue in 2017, one in a series of financial knocks expected to include a further sale of properties in the coming weeks.

The beleaguered Chinese real estate-to-entertainment group said that revenue fell to RMB227 billion and that net profit was basically flat. The group’s net asset value dropped by 12% in 2017 to RMB700 million.

The group has been on the receiving end of a succession of Chinese government actions to curb reckless corporate overseas expansion. These measures have included capital controls and restrictions on China’s banking and investment sector, as well as Cabinet-level redrafting of rules on preferred and disfavored investment sectors. Entertainment, hotels and sports are all now frowned upon.

The measures caused Wanda to reshuffle many of its assets. It has sold off hotels in China and handed off much of its theme-park business. “The revenue from real estate reached RMB83.17 billion, down 24% year-on-year, mainly due to the sharp decrease in revenue from real estate resulting from the transfer of cultural tourism projects,” the group announced Saturday. Wanda said that cultural-sector businesses represented 28% of group revenue in 2017.

The company said its other entertainment businesses, including Wanda Cinema Line and AMC, continued to grow. The per-screen box office of Wanda movie theaters is 1.9 times the Chinese average, the company said. Its cinema loyalty scheme claimed 100 million members.

“Wanda’s film group achieved revenue of RMB53.2 billion in 2017, or 99% of its target, up 36% [year on year]. In 2017, Wanda opened 199 new movie theaters worldwide with a total increase of 1,585 screens. To date, Wanda operates 1,551 movie theaters worldwide with 15,932 screens,” Wanda said.

In recent days Wanda’s overseas asset disposals have continued. It sold a property in London’s Nine Elms district – notching a $60 million profit in the process – and is poised to sell two Australian developments in the coming days .

More Biz

  • Here’s How Much Money 10 Artists

    Here’s How Much Money 10 Artists Are Owed by PledgeMusic

    For eight years, PledgeMusic was a success story: A direct-to-fan platform where artists worked directly with their audiences to fund their albums, tours and all stripes of merchandise, with fans able to purchase everything from custom guitar picks to private concerts. Yet last June, Variety broke the news that the company is struggling to pay [...]

  • Korea's CJ CGV Switches Turkey CEOs

    Korea's CJ CGV Switches Turkey CEOs as It Battles With Local Industry

    Yeun Seung-ro has been appointed as CEO of CGV Mars Entertainment, the Korean-owned company that operates Turkey’s largest cinema chain. He replaces Kwak Dong Won, another veteran of the CJ-CGV group. The change of personnel may reflect two ongoing battles within the Turkish film industry. CJ-CGV, which bought Mars for some $650 million in 2016. [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Lisa Borders Time's Up

    Time's Up CEO Resigned After Son Was Accused of Sexual Assault

    Time’s Up has announced in a statement posted to Instagram that its former president and CEO Lisa Borders, who resigned Feb. 18, did so after her son was accused of sexual assault in a “private forum.” “Within 24 hours, Lisa made the decision to resign as President and CEO of Time’s Up and we agreed [...]

  • Louis Tomlinson Signs With Arista (EXCLUSIVE)

    Louis Tomlinson Signs With Arista (EXCLUSIVE)

    One Direction’s Louis Tomlinson has signed with Arista, sources tell Variety. While the singer was formerly linked with Epic Records in 2017, he is signed directly to Simon Cowell’s Syco label and will move within the Sony Music family to Arista. Tomlinson teased a new single on Feb. 2, posting on Twitter, “Just heard the [...]

  • Jussie Smollett

    Jussie Smollett's Bail Set at $100,000, Must Surrender Passport

    UPDATED: A Chicago judge set a $100,000 bond for Jussie Smollett on Thursday, as the “Empire” actor made his first court appearance. Smollett faces one felony count of filing a false police report. Police allege that Smollett staged a Jan. 29 attack, telling detectives that he was accosted by two men who used racial and [...]

More From Our Brands

Access exclusive content