Cineworld dials back losses from Covid-hit year ahead of ‘challenging’ period
Cineworld has managed to dial back some of its losses over the past year amid a “challenging” period for the beleaguered cinema chain, the company said on Friday.
The British entertainment behemoth filed for bankruptcy in the US just weeks ago.
Admissions in the six month period surged more than 400 per cent to 82.8m in the six months to 30 June, up from 14.1m in the same period last year.
Shareholders in the London-listed company swallowed a loss of 19 cents a piece in the period, down from a cut of 42 cents cut in the same months a year prior.
Cineworld, which had its admissions and earnings plummet during lockdown restrictions in the UK and North America, this morning reported in its preliminary results a pre-tax loss $364.9m, versus a $576.4m loss last year.
Admissions in the third quarter were below expectations and are expected to remain below pre-pandemic levels in the next two years.
Alicja Kornasiewicz, Chair of Cineworld Group plc, said “the lingering impact of the Covid-19 pandemic” led to the Chapter 11 restructuring filing in the US amid a fragile balance sheet and liquidity position.
The filing aims to create a more effective business and strengthened capital structure to “better position Cineworld for the future,” Kornasiewicz said in a statement.