Cinemas could lose 80% of annual revenue
Cinemas could lose 80% of their annual revenue and a significant portion of their reserves have already run out during the spring restrictions, Erika Borsos, President of the National Association of Cinemas, told business daily Világgazdaság.
Fall is usually a strong period for cinemas, but they remain closed for the time being. Since reopening from the spring closure (which ran from March 16-June 25) until forced to close again at the beginning of November, the number of cinema-goers reached 20-60% compared to the same period in 2019. Last year, the Hungarian cinema market had 15 million visitors, and net ticket revenue exceeded HUF 22 billion.
According to Borsos, the possibility of wage subsidies is a great help to the sector, but it alone does not solve the situation of cinema companies, as they currently cannot generate revenue at all.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.