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Kinomax, one of Russia’s largest cinema chains, will invest $12 million in expansion over the next 12 months despite stagnating movie attendance.
Boris Asriyev, the company’s co-owner and chairman of the board, was quoted by the Russian business daily Vedomosti as saying that the company has invested in construction of new theaters $30 million (1.5 billion rubles) over the past 18 months and another $12 million (600 million rubles) has been slated for investment in construction and equipment over the next 12 months.
According to Asriyev, the cinema chain has obtained a long-term loan to finance its expansion scheme.
Kinomax, which has until recently operated mostly outside Moscow, is centering its expansion on the Russian capital. A year ago, the chain operated only one theater in Moscow, while another one was inaugurated in late 2014 and two more most recently. The new theaters are equipped with RealD equipment.
The company said it hopes to see revenues go up by 15 percent thanks to the expansion, the trade journal ProfiCinema reported.
Meanwhile, Kinomax is expanding at a time when movie theater attendance in Russia is stagnating. In 2014, movie theater attendance fell in Russia for the first time in 12 years, according to the analytical group Movie Research. Results for 2015 so far have been mixed.
With 30 theaters and 213 screens in 21 cities, Kinomax is Russia’s fourth largest cinema chain in terms of its size. According to the analytical company Neva Research, Kinomax was the third largest chain in terms of ticket sales in 2014.
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