By RACHNA LAL
Communications (Fiji) Limited is expanding its investment in cinema operations in Papua New Guinea.
It has confirmed plans to be involved in construction of Port Moresby’s second cinema multiplex in the new Waigani Shopping complex.
Communications Fiji Limited’s subsidiary PNG FM Limited, will along with the PNG-based partner, the City Pharmacy Group invest 1.5 million Kina (FJ$1.07 million) each.
This would mean they increase their respective shareholdings in Paradise Cinemas to 41.6 per cent.
Communications Fiji managing director, William Parkinson said foundation investors, Damodar Brothers Limited, remain committed to the venture.
But, he said they feel the PNG-based partners should drive future expansion of Paradise Cinemas,” he said.
The new cinema multiplex is expected to open in mid-2014.
Mr Parkinson, said the three cinema multiplex will open up new markets by providing more affordable access to the movies.
He said the move was strategic following the positive growth of Paradise Cinemas first premium complex based in the Vision City mall.
“Increasing ticket sales, plus new revenue centres like our games arcade are driving growth,” he said.
“Recently, we also opened an Eagle Boys Pizza outlet inside the Vision City theatre complex. However, our Vision City cinemas are aimed at a high income market.”
Mr Parkinson said the Waigani multiplex will target a wider customer base.
The investment
The new complex is expected to cost 7 million Kina (FJ$4.9 million) and will be funded via 3 million Kina (FJ$2.13 million) in additional shareholder equity with the balance being raised in debt.
The first partnership
Papua New Guinea got its first cinema multiplex theatre in 2012 following a partnership between Communications Fiji, Damodar Brothers (Fiji) Limited and City Pharmacy Group Limited which has Fijian links.
The complex comprising of three cinemas opened on the third floor of the Vision City Mega Mall in Port Moresby.