Cineworld’s cash reserves shrink as troubled chain sees weak enrollment

Struggling cinema chain Cineworld revealed that its cash reserves fell by nearly two-thirds in the first half of this year as it warned of weak admissions.

The debt-ridden businessman told investors that audiences will stay below pre-Covid levels for at least the next two years as it reported worse-than-expected trading for the past quarter.

The group, which operates 747 cinemas globally, said the number of cinemas in the three months to September was “lower than expected”.

Cineworld filed for bankruptcy specifically in the US in an attempt to buy time to restructure its business earlier this month after blaming a “limited” movie for a weak audience.

The group, which also operates Regal cinemas in the US, said it now also expects “lower theatrical releases in 2023 and 2024” as more releases move to streaming platforms.

Close

Cineworld also operates the Picturehouse chain in the UK (Jonathan Brady/PA)

However, it does emphasize that it expects some improvement in the final quarter of 2022, amid scheduled blockbuster releases including Black Adam, Black Panther: Wakanda Forever and Avatar: The Way Of Water.

Cineworld says it has benefited from the easing of pandemic restrictions this year but has seen an increase in “cash burning” due to a “slower-than-expected recovery in the first six months”. five”.

The company had $131 million (£117 million) in cash at the end of June, compared with $354 million (£317 million) at the end of December last year.

On Friday, it also revealed a 487% increase in admissions to 82.8 million in the half year to June, after pandemic restrictions were eased year-on-year.

As a result it reduced its loss to $364.9m (£327m), from $576.4m (£508.5m) over the same period last year.

Covid-19 continues to weigh on our trading for half a year, although we have been encouraged by the gradual recovery in our performance in recent monthsMooky Greidinger, Cineworld Corporation

Cineworld Group CEO Mooky Greidinger said: “This has been a challenging period for Cineworld due to the unprecedented impact of the Covid-19 pandemic on our business as well as the slowdown in performance. and continued to interrupt movie schedules.

Video of the day

“Covid-19 continues to weigh on our trading for half a year, although we have been encouraged by the gradual recovery in our performance in recent months – as pandemic restrictions When finished, guests return to watch popular movies.

“The performance of the key blockbusters in the first half, including Top Gun: Maverick; Doctor Strange in Madness’s Multiverse; Jurassic World Dominion; Batman, exemplifies the constant need for such exceptional cinematic experiences.

“Despite these encouraging signs and a series of movies expected later this year, we need to strengthen our balance sheet and liquidity position following the profound and unprecedented impact of Covid. -19.

“As a result, we have begun a Chapter 11 restructuring in the US to execute a leverage-free trade that will provide the financial strength and flexibility to accelerate and leverage our strategy. of Cineworld.”

https://www.independent.ie/entertainment/movies/cineworld-cash-reserves-shrink-as-struggling-chain-sees-weak-admissions-42028782.html Cineworld’s cash reserves shrink as troubled chain sees weak enrollment

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button