Cineworld warns of weak audience through November compared to ‘limited’ releases

Cineworld has warned audience numbers are weaker than expected and predicts they will stay low through November due to “limited” movie releases.

The world’s second-largest movie theater operator said it is now evaluating options to shore up its finances.

The group, which also owns Picturehouse chains in the UK and Regal Cinemas in the US, has pinned their hopes on releases like Top Gun: Maverick, The Batman and Thor: Love And Thunder to aid their recovery from the impact of the pandemic. sick.

However, in a statement, the company said: “Although demand is slowly recovering since reopening in April 2021, recent enrollments have remained below expectations.

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Tom Cruise attends the UK premiere of Top Gun: Maverick (Ian West/PA)

“This lower enrollment is due to a limited drama that is anticipated to continue until November 2022 and is expected to negatively impact the group’s trading and liquidity position during this period. next time.”

Cineworld said it will continue with its cost-saving plans but will also consider new options to improve its financial situation.

The business, which was saddled with $4.8bn (£4bn) in debt at the end of last financial year, said it was in talks with stakeholders about potential funding or considering restructuring. Accounting balance sheet.

Liberum analyst James Wheatcroft said its debt burden means the balance sheet restructuring will “potentially leave very little for existing Cineworld shareholders”.

“The group’s business is not expected to be impacted by these efforts, and Cineworld hopes to continue to meet its ongoing business partner obligations,” said Cineworld.

“Cineworld continues to welcome guests to its cinemas across global markets as usual without interruption.”

It comes after the business posted a loss of US$565.8m (£429m) in 2021 as revenue was boosted by higher enrollment.

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Sentiment around the company has also been dampened over the past year by a number of separate legal views.

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Taika Waititi arrives for the Thor: Love And Thunder premiere in Leicester Square, London, in July (Ian West/PA)

In September, the London-listed business reached an agreement to pay US$170 million to disgruntled Regal shareholders, who were disappointed with the price they paid for the US cinema chain because after a dispute, although they later sought to delay some payments.

Meanwhile, in December, a court ordered a payment of 1.23 billion Canadian dollars (£720 million) after deciding not to take over Canadian rival Cineplex during the pandemic.

CEO Mooky Greidinger appealed against the court’s ruling and stated that the company acted in “good faith”.

https://www.independent.ie/entertainment/movies/cineworld-warns-of-weak-audience-numbers-until-november-over-limited-releases-41917514.html Cineworld warns of weak audience through November compared to ‘limited’ releases

Fry Electronics Team

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