JAKARTA. PT Graha Layar Prima Tbk (BLTZ) claimed there would be a significant decline in its revenue earlier this year, because the CGV Cinemas had been closed temporarily, following government regulations to prevent the spread of the coronavirus (COVID-19).
Yeo Deoksu, Director of BLTZ, explained that the decision to close all of its cinemas will have a significant impact. The reason, said Deoksu, is that a number of the company's business lines such as food and beverage sales are also carried out in the CGV Cinemas cinema area. "There was a significant decline in the company's revenue," Deoksu said in information disclosure.
Nevertheless, Deoksu explained that the company had tried to save on operational expenses. The capital expenditure budget is also controlled to maintain the stability of the company's cash flow.
Currently, BLTZ management is trying to develop a strategy to reduce its operational costs. Starting from negotiating to get a discount on business premises, to collaborating with business partners to prepare for the re-opening of CGV Cinemas.
"These steps are taken to welcome the return of film fans at the cinema," Deoksu explained.
For information, BLTZ recorded a loss of Rp 3.64 billion in the first quarter of 2019, even though its revenue in the period reached Rp 292.26 billion. So far. BLTZ's management has not been able to estimate the exact losses felt by the company in the first quarter of this year. (KR/AR)