Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Cineworld Warns Admissions Will Not Surpass Pre-COVID Levels in 2023 and 2024

Stock Markets Sep 30, 2022 04:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
CINE
-5.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Scott Kanowsky 

Investing.com -- Cineworld Group (LON:CINE) warned that it expects admissions will remain under pre-pandemic levels over the next two years despite a recent resurgence in six-month ticket sales, heaping further pressure on to the ailing movie theater chain after it filed for bankruptcy protection earlier this month.

In a statement in the British company's half-year results on Friday, chief executive officer Mooky Greidinger described the current trading environment as "challenging," citing the widespread impact of the COVID-19 crisis on moviegoer demand and film release schedules.

"Covid-19 continued to weigh on our trading during the half-year, although we have been encouraged by the gradual ongoing recovery in our performance over recent months - as pandemic restrictions ended, guests returned for popular movies," Greidinger said, referring to recent blockbusters like "Top Gun: Maverick" and "The Batman."

Revenue for the six months to June 30 jumped by 417% year-on-year to just under $1.52B, thanks to a nearly six-fold increase in admissions. The company's loss before tax shrank in turn to $365.9M from $576.4M.

Cineworld flagged that sales in the third quarter have so far come in below pre-crisis figures, but added that it is optimistic that big upcoming releases like "Black Adam" and "Avatar: The Way of Water" will boost returns in the final three months of 2022.

However, the world's second largest cinema group said admissions in both its 2023 and 2024 fiscal years will not surpass numbers seen before COVID lockdowns that upended the business and threatened its overall liquidity position.

Cineworld filed for bankruptcy protection on September 7 in a U.S. court in a bid to decrease its massive debt pile. The firm plans to keep operations running "as usual" during the process, while also pledging to strengthen its balance and "provide the financial strength and flexibility to accelerate, and capitalize on, the Group's strategy in the cinema industry."

Meanwhile, Cineworld was granted access to a $785M tranche of a debtor-in-possession financing facility worth about $1.94B, which it said would help it secure short-term liquidity, meet its obligations to vendors and suppliers, and pay employee wages. The rest of the funds will become available "upon court approval on a final basis," the company said.

Shares in Cineworld were in the red in mid-morning trading.

Cineworld Warns Admissions Will Not Surpass Pre-COVID Levels in 2023 and 2024
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Roberto Simone
Roberto Simone Sep 30, 2022 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No surprise at all there. Apart the cost of living going through the roof,  the quality of movies is absolutely  rubbish.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email