A1 merges Kronverk Cinema and Formula Kino
А1 investment company announces the merging of Kronverk Cinema cinema chain (100% belongs to А1) and Formula Kino cinema chain (55.66% of shares were acquired by А1 in January 2012). The share of А1 in the merging of a holding company will be 75%. The merging transaction for the cinema chains was endorsed and approved by the Federal Antimonopoly Service of the Russian Federation.
The new-merged cinema chain is the leader of the most profitable markets of movie in Moscow and St. Petersburg. According to the results of 2012 the chain will take the 2nd place in Russia both by box-office takings (8.4 %), and by number of movie theatres (237 screens in Russia and 17 screens in Ukraine). Considering the opening of new movie theatres, by the end of 2013 the total number of the merged chain screens will make 282. The basic brand for further development and functioning of the merged chain will be Formula Kino, one of the industry leaders by popularity and recognizability among the audience.
According to Mikhail Khabarov, А1 President: “the merged company is a perfect platform for creation of a new industry leader, the management tasks for further three years include the increase of the company’s market share up to 15 % taking the dominant positions in Russia by the chain profitability”
In his turn, Andrey Von, Managing Director of А1, remarked that: “the synergistic effect of the chains merging will enable to increase the film service and advertising profits, provide conditions for expansion of audience and reduce the administrative and operating expenses”.