With the help of finance income and stock offering, Alibaba’s film division earned a profit of millions of dollars last year
The growing Chinese film market, plus a stock offering and a multiple number of acquisitions, helped Alibaba’s division, Alibaba Pictures Group to earn a net profit in the last year – reversing the loss in 2014.
Singapore and Hong Kong listed company told it ended 2015 with a net profit of $71.6 million, up from a loss of $64.1 million, on revenue of $40.6 million, a rise by 108.3%. Last year, a rise in the operating loss was recorded, which the organization states it compensated for with a “finance income” described as a sum of $136 million, “comprising foreign exchange gains and interest income.”
During the last year, Alibaba Pictures turned itself into an integrated entertainment service provider with four core segments: internet based distribution and promotion, international operations, entertainment e-commerce and content production.
On June 1, the organization acquired the cinema ticketing technology Yueke. On December 31, it further acquired the E- ticketing business, Yulebao and Taobao Movie, a C2B investing and financing platform for entertainment-related ventures, from Alibaba Group.
CEO of Alibaba Pictures, Zhang Qiang stated, “The Chinese movie industry continued to demonstrate strong growth momentum in 2015, with overall national box office revenues surging 48.7% to RMB 44.1 billion ($6.78B)”.
Under the international strategy of the Hangzhou based organization’s film unit, it made its first investment in a Hollywood tentpole last year with Mission Impossible: Rogue Nation. The organization collaborated to release the PROC on which $136 million was spent.
This turned into the topmost Hollywood 2D grosser ever in China, although a large number of industry watchdogs felt it really underachieved in the film market. Alibaba today said the movie contributed profit and revenue of $1.1 million and $10.6 million, respectively to Jack Ma’s company.
Also last year, the film division established its office in Los Angeles. Its other investments in non-Chinese movies include Korean picture Real, for which it holds the exclusive movie distribution rights.
In the country, many major ventures are in the production phase. One of those is Ferry Man, which is produced by producer Wong Kar Wai and starred by Tony Leung. Other activities of last year include a partnership deal with the second biggest multiplex chain, Dadi Cinema Group, and an investment of $86 million in the Chinese movie production company, Bona Film Group.
In other news, Economic Times reported that the Alibaba-backed Paytm, which aims to extend its travel market business, might purchase a stake in Yatra, which is an Indian travel services provider. Paytm had two meetings with the travel agency.
Paytm, which was established as online payments service provider, entered the travel market in 2015 to increase transaction rates in the business-payments industry. In the past, Yatra and Make My Trip have turned into harsh competitors, although other companies in the industry such as Expedia and Cleartrip tap the market for online travel.