Brazil’s Submarino Widens Its Internet Reach Acquiring Ingresso.com

Brazilian Internet retailer Submarino S.A. announced the acquisition of 100% of the stock capital of Ingresso.com.br ("Ingresso.com"), a leading online retailer of movie, theater and entertainment tickets.

With this acquisition, Submarino says it is entering a new and attractive market while also offering its customers a new differentiated service. The price paid for the acquisition, adjusted by Ingresso.com’s cash position, was 8.3 million reais (US$ 3.7 million), equivalent to 7 times the 2005 projected EBITDA.

Ingresso.com has two business units. Through its website, the company sells tickets for movies, theaters and entertainment events and is currently the only company selling movie tickets through the Internet in Brazil.

In 2004, the company sold approximately one million tickets to its active client base of 131,000 clients. It also deals with automation of movie theater and music hall box offices. Ingresso.com’s box office software runs 881 theaters nationwide.

In 2004, Ingresso.com’s revenue reached 4 million reais (US$ 1.8 million), representing a 77% growth over 2003. In that year, the company’s EBITDA was 969,000 reais (US$ 431,000), a 28.3% margin over net revenues.

The Market

The movie theater market in Brazil was estimated at 770 million reais (US$ 342 million) in 2004 with 115 million tickets sold. The market grew at an annual average rate of 22% from 2001 to 2004.

We estimate that the level of penetration in Brazil is 0.6 tickets/year, while it is 1.4 in Mexico and 1.1 in Argentina. Online sale penetration is 1% over the total number of tickets sold. In the USA, online and telephone sales account for 10% of total tickets sold.

The company believes that the market of other entertainment tickets (theaters and shows) is around 280 million reais (US$ 124 million), equivalent to 7 million tickets sold in 2004. For comparison purposes, the entertainment ticket market in Mexico sells approximately 20 million tickets per year, in spite of having a population 43% lower than Brazil’s.

Submarino says there is "tremendous potential" for Ingresso.com to operate together with Submarino. According to Submarino, Ingressos will provide a differentiated service to clients, besides offering the a wide selection of books, music and DVDs.

The sale of tickets will be provided by Submarino. During November, the clients of Ingresso.com will receive a coupon welcoming them to the Submarino community. In the near future, a selection of DVDs and movie sound tracks will be offered on Ingresso.com web pages.

Submarino offers in its online site more than 700,000 items across 24 product categories that are sourced from more than 1,100 suppliers, in addition to e-commerce services. Submarino delivers to the main cities in Brazil in up to two days and provides same-day delivery for certain items to the São Paulo metropolitan area.

Submarino S.A. – www.submarino.com.br

Tags:

You May Also Like

Jobs in Brazil: Exclusion Is the Norm

According to a new IBOPE study, 74 percent of the companies in Brazil have ...

Brazilian Kills Son, 4, Because He Wasn’t Invited to Boy’s Birthday Party

A Brazilian civil servant, 27, killed his own 4-year-old son with two shots to ...

Brazil’s Paulo Coelho, Live and Free, at a Computer Near You, October 11

Brazilian best-selling author, Paulo Coelho, will be discussing his books and answering readers’ questions, ...

The Brazilians and Their Intriguing Movies Are Back in New York

From July 17 through 31, New York's Museum of Modern Art (MoMA) will be ...

Brazil President’s Mandate Is Now in the Hands of the Senate

Brazil’s Chamber of Deputies approved the admissibility of President Dilma Rousseff’s impeachment request. With ...

Brazil Approves Construction of Another Power Plant in the Amazon

Brazil’s Environmental Protection Institute (Ibama) has just authorized the construction of another hydroelectric power ...

Powell: ‘Brazilian Way of Fighting Hunger Is Unworkable’

We do support Brazil. We feel strongly that poverty and hunger are two enemies ...

Brazil’s Miracle Man John of God Draws the World’s Incurables

About 300 people come to a small town of Abadiânia, in the Brazilian midwest ...

Peugeot Citroí«n Celebrating 9.5% Growth in Brazil

Peugeot Citroën Brazil was the Brazilian carmaker that presented the largest growth in 2005. ...

Why We Failed: Brazil and World Politicians Can’t See Humanity, Only Voters

Everyone knows that the Copenhagen meeting failed in its attempt to impede the climate-change ...