Bona reports $20.7m Q2 revenue

Bona Film Group Ltd, a Nasdaq-listed Chinese private film company, on Friday reported net revenue of $20.7 million in the second quarter, a year-on-year increase of 23.9 percent. The leading film distributor attributed the increase largely to the growth of its theater and exhibition business.

The net revenue generated from its movie theater business doubled to $9.8 million in the period, primarily due to the expansion of theaters. Bona owned and operated 14 movie theaters by the end of June 30, compared with six in the same period last year.

The film distribution sector, which used to be the company's main business, contributed $8.7 million to its total net revenue, registering a growth of 12.7 percent year-on-year. During the April-June period, Bona distributed three films, including one imported production "The Three Musketeers."

Yu Dong, founder, chairman and chief executive officer of Bona Film Group, said that, during the second quarter, the company furthered its strategy to diversify its revenue stream, increasing the revenue from its theater business by 100 percent year-on-year and 23 percent compared with the first quarter.

"By reducing the revenue concentration in our film distribution segment, we have made our business less susceptible to the timing of blockbuster releases," said Yu.

Bona also announced the appointment of Jack Gao to its board of directors, which will be effective from Sept 10. Gao is senior vice-president of News Corporation, and CEO of News Corp's China Investments. In May, News Corporation acquired a 19.9 percent stake in Bona, as a strategic investment.

News Corp's strategic investment could help to accelerate Bona's long-term global growth initiatives, in addition to diversifying the company's ownership base, Yu said.