Share

Nu Metro aims to grow business in Africa

Johannesburg - South Africa’s second-largest cinema group, Nu Metro, has become the latest Times Media Group (TMG) divestment after it was sold for R75m.

TMG, previously Avusa, has been shedding non-core assets, including retail chains Exclusive Books and Van Schaik Publishers, since last year.

One Fifty, which bought Nu Metro, highlighted the roll-out of Nu Metro’s new luxury cinema brand, Scene. It recently completed its upgrade to digital projection at all 149 of its screens in the country.

Extravagant

These “VIP” cinemas offer leather recliners and pre-screening lounges  where cinema patrons can ditch the traditional popcorn and cold drinks for light meals and adult drinks.

However, the future of cinema is not just about more extravagant “premium” experiences.

It is also about reaching the unserved parts of the country, says Julian Kannigan, commercial director of One Fifty Capital.

Cinema

South Africa’s cinemas are overwhelmingly concentrated in Gauteng, where almost half of them are located. The remainder are mostly in Cape Town and Durban.

“There are a significant number of people in South Africa who don’t have access to a cinema and have never experienced the current offering,” says Kannigan.

Nu Metro is also eyeing “underscreened” countries in west and east Africa, he adds.

Releases

Nu Metro’s turnover last year was R414m, but the division has an operating loss of R3m.

It has 149 screens in 19 complexes, while market leader Ster-Kinekor, owned by Primedia, has more than 400 screens at 54 sites.

The local box office is worth just under R800m a year, according to the National Film and Video Foundation’s annual report on cinema releases.

This excludes the popcorn and cold-drink sales, as well as the advertising income from cinemas that are crucial to the business.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders