German cinema chain Cinemaxx closing more multiplexes

German cinema chain Cinemaxx has announced plans to close another three to five cinema multiplexes which it has deemed no longer profitable.

“As of 30 September, we will have 32 multiplexes in Germany, two fewer than at the beginning of the year”, Cinemaxx head Christian Gisy told Wirtschaftswoche in an early report on Friday. “In the intermediate term, we want to have 27 to 29 locations.”

Meanwhile, the chain plans to invest millions in improving the draw of the remaining multiplexes. “We are currently investing heavily in technology. We are installing LCD screens in theatres where we can show trailers and advertisements”, continued Gisy. The LCD screens alone account for €3 million of the investment, while the second leg of the plan – the remaining multiplexes – will see €7.5 to €10 million invested over the next three to five years, according to the company.

Cinemaxx presented its quarterly results on Friday. The company reported losses all of 2007 and the first half of this year. But Gisy expressed confidence in the future: “The development [of the curve] is good, even if the numbers for the first half of the year are negative”.

The second half of the year saw more hopeful films released in theatres, Gisy said, adding that he thinks Cinemaxx may end up closer to the black at the end of 2008. Gisy confirmed that renovations of the chain’s multiplexes will “take one to two years.”