Cineworld losses are getting narrow and more upcoming blockbusters may help in reducing the mounting debt pile of the past two years due to the COVID-19 pandemic and lockdown that forced moviegoers to stay indoors.
The cinema chain is equipped with more than 9,000 screens across the world. Its 2021 losses were reduced to 536 million pounds due to the successful screening of Spider Man: No Way Home. Its losses in 2020 mounted to 2.2 billion pounds.
The London-headquartered entertainment company is hoping to reap good returns from sequels like Top Gun: Maverick and Avatar 2 in 2022. The Batman has been lately released and more films are being awaited to be screened shortly.
Cineworld CEO Mooky Greidinger they are now positioned well and carefully executing the strategy to capitalize on some of the strong line-up blockbusters later this year.
Meanwhile, it is confirmed that viewer admissions have increased by 75.2 percent and they are benefiting from the lift of pandemic restrictions.
Greidinger added that the revenues have jumped to 1.37 billion pounds in 2021 while in 2020 it was just 646 million pounds.
Meanwhile, the stock prices of Cineworld are witnessing a rise gradually as investors are gaining confidence. The annual losses are now cut to 429 million pounds, which was 2 billion pounds in the previous year.
The net debt of Cineworld is 6.7 billion pounds leading to the sinking of credit score to 1 out of 100. The credit score of 1, or lowest, means it would default in 2023. In 2020, the net debt was 454 million pounds.
The shares simultaneously plunged by about 70 percent in the recovery period due to two legal spats including a multi-million-dollar fine amid a dispute with Cineplex of Canada as well as delayed payments to the US chain Regal, its former shareholders.
The company has stated lacking the liquidity fund to pay $971 million to Cineplex.
Cineworld was founded in 1995 and is headquartered in London, UK. It is ranked second in the world with respect to the largest cinema chain. It is equipped with over 9,500 screens across about 800 sites and ten countries including Bulgaria, Hungary, Israel, Ireland, Czech Republic, Slovakia, Romania, Poland and UK. The first position is held by AMC Theatres.
The British cinema firm operates under various brands including Picturehouse, Cinema City, Regal Cinemas and Yes Planet.
It closed screens in the United States, the United Kingdom and Ireland temporarily in October 2020 due to tentpole films delay and the impact of the Covid pandemic on out-of-home films. The cinemas were opened in May 2021.