Japan's Daiwa backs Vietnam cinema operator

The deal values Beta Media at VND1 trillion ($43 million). It has been positioned as a strong vote of confidence in the country's economic resilience amid the COVID-19 outbreak.

According to Beta Media founder Minh Beta, an investment decision was made in the first half of 2019, and an agreement reached by the end of the year. Cinemas were forced to close nationwide in mid-March 2020 and began to reopen in May. Revenues for the local industry are said to have dropped 50% year-on-year during this period. 

"Undeterred, Minh Beta and the team have patiently demonstrated to us their impressive business results in the past, a potential future of the film industry in Vietnam, as well as Beta Media's determination and perseverance in promoting this important industry in the long term," Kenichi Shimomoto, a senior managing director at Daiwa PI Partners, said in a release.

"Currently, all cinemas of Beta Media have resumed operation, and the investment deal has been completed, so we do believe that our journey to the bright future has already restarted." 

Beta Media operates 12 cineplexes and about 60 cinema halls across Vietnam under the name Beta Cinemas. The company aims to focus on modern equipment and facilities while offering affordable pricing of about VND50,000 per ticket.

Economies are achieved by favoring domestic construction materials to reduce investment costs while optimizing the design of theaters to minimize operating, utility, and personnel costs. Rental costs are managed by eschewing development in commercial centers and mega malls, which are considered too expensive.

The company plans to use the fresh capital to expand its footprint during the next few years. This follows a recent decision to implement a franchising model the company describes as the first of its kind in Asia Pacific. There are currently three cineplexes under the Beta Cinemas brand using this model.

Previous Beta Media backers include local private equity firm VI Group, which invested in 2015 via its second fund, and Hong Kong's Blue HK Financial Group, which committed $2.5 million in 2017 at a valuation of VND600 billion.

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• Topics
• Southeast Asia
• Consumer
• Early-stage
• Media
• Vietnam
• Daiwa Securities SMBC Principal Investments