Bahrain Cineco approves 50pc cash dividends

01/04/2018 07:48 AST

Bahrain Cinema Company (Cineco), market leaders in the entertainment industry in the kingdom, have approved the distribution of a cash dividend of 50 per cent of the paid up capital, the equivalent of 50 fils per share equivalent to BD3.95 million ($10.42 million) proposed by the board following the approval of the Central Bank of Bahrain.

The announcement was made during the Annual General Meeting (AGM) held recently at Cinema 2 in the Cineco Cineplex that is located within Wadi Al Sail Mall.

The meeting was presided over by the Chairman of the Board, Dr Esam Abdulla Fakhro and attended by other board members, the executive management team and the shareholders of Bahrain Cinema Company.

During the AGM, shareholders approved the minutes of the AGM held last year and also approved the results for the financial year ended December 31. Speaking at the meeting, Dr Fakhro said: "2017 has been a very prosperous and growth-oriented year for us in terms of the productive initiatives we have taken that are continuing to set a solid foundation for exponential progress in the foreseeable future. With regards to our culinary offerings, in the previous year, Cineco opened a new Takatak restaurant for providing authentic Indian and Chinese cuisine, along with a first-of-its-kind Indian Street Food Cuisine Restaurant, Chaat and Chai in the Lulu Hypermarket in Hidd."

"Since the performance of Takatak outlet in Dragon Mall in Diyar Al Muharraq is as per our expectations and positively contributed to the net profit of the company, Cineco is now planning to open similar Takatak outlets in other parts of Bahrain which will provide further impetus to the top line growth,," he stated.

"In terms of the primary movie and entertainment aspect of our business, we also successfully renovated Al Hamra Cinema, by completely overhauling its layout and facilities, thereby substantially enhancing its ambience and providing a modern facelift that has added to its popularity amongst the expatriates," said Dr Fakhro.

"In line with our aspirations to systematically and periodically augment our offerings throughout the kingdom, we have wholly renovated the Saar Cineplex as well. In 2017, we also proudly unveiled the illustrious result of our high level joint venture with VOX Cinemas and introduced an IMAX Screen in City Centre Bahrain," he remarked.

"We are confident that that our new partnership will see the Cineplex become one of the region's most iconic entertainment destinations with the addition of new screens and countless new innovative and exclusive cinema and dining experiences," he added.

CEO Ahmed Rashed said: "While Cineco is beginning to move towards the next level of growth based on solid foundation built over the past 50 years, we always refocus our company to be in the business where we lead by investing in new capability to capture future growth."

"In terms of our future, since Saudi Arabia has allowed for the establishment and operation of cinemas in its territory after 35 years, we are currently exploring opportunities to expand our business into that region through the opening of cineplexes and Go-Karting tracks as well as Takatak and Rendezvous restaurant outlets," he stated.

"With regards to our local offerings, the construction of a 10-Screen Cineplex in Oasis Mall in Juffair has just started, with its opening expected to take place in the third quarter of 2018. In addition, the construction of the new 'Awal Plaza' residential cum commercial building in place of Awal Cinema has been successfully completed. The rental income from this building amongst many other projects in the works ensures a regular revenue stream to the Company in the coming years," he added.

"Further solidifying our future, we are set to open 'The Red Dragon', a restaurant that is located in the Dining Village next to Dragon Mall within Diyar Al Muharraq which exclusively offers Chinese cuisine, in the third quarter of 2018," he added.

Cineco owns and operates a total of 47 cinema screens in the Kingdom of Bahrain and 47 screens in other GCC countries.

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