Beta Media Raised USD 8 Million From A Japanese Leading Fund - Daiwa PI Partners, Amid COVID-19
HO CHI MINH CITY, Vietnam, June 17, 2020 /PRNewswire/ -- On June 15, 2020, Beta Media officially reached an agreement to receive USD 8 million from the prestigious Japanese investment fund, Daiwa PI Partners. With this agreement, Beta Media achieved an enterprise valuation of VND 1,000 billion.
Previously, in 2015 Beta Media received investment capital from VIG (Vietnam Investment Group), and in 2017 received USD 2.5 million from Blue HK Financial Group (Hong Kong) with a valuation of VND 600 billion.
Beta Media operates the low-cost movie theater chain Beta Cinemas, with 12 cineplexes and nearly 60 cinema halls nationwide. As COVID pandemic leaves many challenges for businesses in Vietnam, this investment agreement is a positive sign for the market from Beta Media.
"The investment call was made in the first half of 2019 and reached an agreement by the end of 2019, but the COVID-19 epidemic delayed the process. Due to COVID-19, Beta Cinemas had to shut down operations for weeks, causing further difficulties," said the Founder of the company, Mr. Bui Quang Minh (Minh Beta).
At the signing ceremony, Mr. Kenichi Shimomoto, Senior Managing Director, Daiwa PI Partners commented: "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. 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. We are very excited and look forward to enjoying this great journey with the Beta team and our fellow investors, VIG and Blue HK."
"This investment will equip Beta Media with more resources to grow further in the near future. Beta Media is expected to reach 50 locations in the next few years," CEO Bui Quang Minh said.
Beta Media launched the Beta Cinemas cinema model at the end of 2014. Beta Cinemas has a youthful and dynamic style, with good quality but affordable ticket prices, targeting a blue-ocean market: students and young, cost-conscious consumers.
Beta Cinemas has an affordable pricing scheme, averaging just about VND 50,000 per movie ticket. However, Beta Media still invests in modern equipment which meet Hollywood standards and modern facilities. Beta Media prioritizes the use of high quality domestic construction materials to reduce investment costs, while ensuring good quality and durability. Beta Media maintains a good profit margin by optimizing expenses, such as rental costs. Beta Media chose not to open in commercial centers or mega malls that were often too expensive, while optimizing the design of its theaters to minimize operating, utility and personnel costs.
Beta Media also recently introduces the cinema franchising business model - a pioneering arrangement that is first of its kind in the Asia-Pacific region. This trail-blazing idea aims to bring together Beta Media's expertise and local business partners' insights to quickly expand Beta's network. Currently, there are 3 cineplexes under Beta Cinemas brand that have succeeded with this new cooperation model.
"With the mission of bringing an affordable cinema experience to all Vietnamese people in all regions of the country, Beta Media will continue to promote the franchise business model in the coming years," Mr Minh insisted.