Cineworld is regarded as one of the Leading exhibition chains which owns Regal in the U.S has reported a sharp loss for the six month period ended 30 June 2020. The group reported that its revenue fell to $712.4M from 2019’s $2.1BN. The group’s adjusted EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization fell to $53M from 2019’s $758.6M. Admissions fell from 136M to 47.5M.
Amid the pandemic , all sites across the group were closed between mid-March and late June-August due to the pandemic. Currently only 561 out of 778 sites are re-opened.
Although he firm is hopeful for the positives with the re-opened sites in ROW territories and initial admission build-up in the UK and US driven by the release of Tenet and local movies.
The company has warned against the challenges faced due to the second waves of coronavirus and said, “There can be no certainty as to the future impact of COVID-19 on the Group. If Governments were to strengthen restrictions on social gathering, which may therefore oblige us to close our estate again or further push back movie releases, it would have a negative impact on our financial performance and likely require the need to raise additional liquidity. We have highlighted the potential impact this could have on the Group within our going concern statement in this document.”
The CEO of Cineworld group said to deadline, Despite the difficult events of the last few months, we have been delighted by the return of global audiences to our cinemas toward the end of the first half, as well as by the positive customer feedback we have received from those that have waited patiently to see a movie on the big screen again.
“The impact of COVID-19 on our business and the wider leisure industry has been substantial, with the closures of all of our cinemas worldwide for an extended period. During this unprecedented time, our priority has been the safety and health of our customers and employees, while at the same time preserving cash and protecting our balance sheet. Our mitigating actions included reducing and deferring costs where possible; making use of government support schemes for our employees; partially delaying capital investments; and suspending our dividend. We have also raised an additional $360.8m of liquidity to support our business.
“Current trading has been encouraging considering the circumstances, further underpinning our belief that there remains a significant difference between watching a movie in a cinema – with high quality screens and best-in-class sounds – to watching it at home. As part of this, our policy regarding the theatrical window remains unchanged as an important part of our business model, and we will continue to only show movies that respect it. While there continues to be a lot of uncertainty, we have a dedicated and experienced team that is focused on managing business continuity while taking advantage of the strong slate currently planned for the months ahead.”