(Yicai Global) July 15 -- Wanda Film Holding, China's fourth-biggest cinema operator, predicts the second half will be better after its losses in the first half amounted to as much as CNY600 million (USD88.8 million) due to the resurgence of Covid-19 outbreaks.

In the second half, gradual improvements are expected at the box office amid a predicted high season of summer holidays, the Beijing-based firm said in its earnings forecast yesterday. The reason is that more than 90 percent of Wanda's movie theaters have reopened as regional Covid-19 restrictions are eased.

However, first-half losses may range between CNY520 million to CNY600 million, Wanda said. A year ago, it made a net profit of CNY639 million.

Some 410, or more than half of Wanda's cinemas were closed in the first half, the movie production company said. That involved key cities such as Beijing and Shanghai. Moreover, major new releases were delayed, affecting box office figures during public holidays.

Wanda is not the only one hurt. In the first half, China's number of moviegoers slipped by 42 percent to 398 million people from a year ago. Box office dropped by 38 percent to CNY17.2 billion (USD2.5 billion). In the second quarter, box office dived almost 66 percent.

From January to June, Wanda earned CNY2.4 billion (USD355.2 million) in box office receipts, down 31 percent from a year earlier. The number of viewers dropped by 38 percent to 57 million. However, Wanda's market share climbed to 16.5 percent, up from 15 percent, based on its slower decline in users than the national average.

Wanda had some good news to share. The company's Australian movie chain, Hoyts Group, recovered better than expected and turned profitable. The chain's box office increased by 46 percent year-over-year to CNY570 million with the number of moviegoers up 46 percent to 8 million.

The forecast had a limited impact on the entertainment company's stock performance today. Wanda's share price [SHE: 002739] fell 1.3 percent to close at CNY12.17 (USD1.80). In the past 12 months, the shares have slumped by 24 percent in value.

Editor: Emmi Laine, Xiao Yi