Galaxy EE loses nearly 2 billion VND per day

In 2022, Galaxy EE – the company that owns the Galaxy Cinema chain – reported a net loss of over 620 billion VND, equivalent to a loss of nearly 2 billion VND per day.

This information was recently announced by Galaxy Entertainment and Education Joint Stock Company (Galaxy EE). This loss represents an increase of approximately 68% compared to 2021.

Significant losses caused Galaxy EE's equity to decrease by more than three times to approximately 260 billion VND. The company continued to increase its liabilities, causing its debt-to-equity ratio to rise from 0.92 to 5.2 times. As of the end of last year, the company had over 1,350 billion VND in liabilities, a 74% increase compared to the same period the previous year.

Regarding the bond market, the company recorded outstanding debt of VND 200 billion across 8 tranches issued since 2021. All have a 4-year term and an interest rate of 10% per year, with interest paid every 6 months. Last year, the company spent VND 20 billion paying interest on these bonds.

Speaking to VnExpress , a representative from Galaxy EE stated that the company suffered significant losses last year due to various objective reasons and the overall impact of the economy . The company's ecosystem was particularly affected by the pandemic. Therefore, the company is still in the process of overcoming the "double blow" of Covid and economic stagnation.

This loss of over 620 billion VND is also "part of the company's development and expansion plan." Last year, Galaxy Education invested in acquiring the online programming training school FuNIX fromFPT Group and launched courses with university entrance certificates. With Galaxy Play, the company invested in film projects such as "Chi Chi Em Em 2" and "Con Nhot Mot Chong," which launched this year with a return on investment (ROI) of over 50%. In addition to feature films, the company also invested in 6-8 exclusive original series projects for its streaming platform.

Regarding Galaxy Studio, a company representative stated that the unit remains efficient and has achieved stable profits, particularly in 2022 and the first six months of 2023. By the end of this year, the company plans to open two more cinema complexes and introduce new film projection technology to Vietnam. "Galaxy Studio's financial situation is currently very good, with ample resources to continue expanding its cinema network and business operations," said the Galaxy EE representative.

Regarding the rapid increase in total debt, Galaxy EE stated that "this is a short-term issue." The company has secured funding until the end of 2024. Therefore, when the economy recovers, the ecosystem will become profitable.

Customers waiting to buy tickets at Galaxy Cinema (Tan Binh District, Ho Chi Minh City), late December 2021. Photo: Nhat Thuc — Customers waiting to buy tickets at Galaxy Cinema (Tan Binh District, Ho Chi Minh City), late December 2021. Photo: *Nhat Thuc*

Galaxy Entertainment and Education Joint Stock Company, formerly known as Galaxy Media and Entertainment Joint Stock Company (Galaxy ME), operates several entities including film production company Galaxy Production, film distribution and cinema company Galaxy Studio, online streaming platform Galaxy Play, Galaxy Media, Galaxy Education, and Galaxy Communications. Of these, film distribution and cinema, online streaming, and online education are the three most prominent areas.

Galaxy Studio currently distributes films exclusively for Walt Disney Studios, Sony Picture Studios, and other independent film companies. Domestically, the company has achieved success with films like "I See Yellow Flowers on Green Grass " (grossing 78 billion VND) and " Em and Trinh" (grossing over 100 billion VND). The company also owns the Galaxy Cinema chain with 18 locations nationwide.

In recent years, Galaxy EE has focused on developing its online streaming platform, Galaxy Play. The company claims that since its founding in 2015, the platform's revenue has steadily increased. In 2021, Galaxy Play had 4.5 million cumulative paying users.

The education sector has also been a focus of this company. In 2020, Galaxy Education invested in and merged with Hoc Mai - one of the first online education platforms for high school students in Vietnam. Subsequently, the company gradually expanded into online education across all levels: preschool, high school, university, and vocational training.

Tat Dat

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