Cineworld says coronavirus has not hurt ticket sales amid Bond movie delay
Cineworld has not observed any “material impact” from the coronavirus outbreak on ticket sales, despite the delayed release of the new James Bond film, it said today.
The cinema chain attempted to allay fears after its shares fell another seven per cent amid analyst concerns Covid-19 could wipe as much as $5bn (£3.9bn) off the global box office.
Cineworld said: “We continue to see good levels of admissions in all our territories, despite the reported spread of Covid-19.”
But its share price dropped for the second day in a row after the release of the No Time to Die James Bond movie was delayed from April to November.
Cineworld also revealed annual earnings are set to miss expectations. It predicted a four per cent year on year fall. That would leave earnings before interest, tax, depreciation and amortisation (Ebitda) at $1.03bn (£794m).
The adjusted core earnings miss analysts’ average estimate of $1.05bn, according to Refinitivdata.
“Although the release of the new Bond movie has been postponed largely due to closure of cinemas in the Asian market, the studios have advised us that in the countries in which we operate, they currently remain committed to their release schedule for the remainder of the year,” Cineworld said.
It warned, however, that there can be “no certainty as to the future impact of Covid-19”.
Film studio MGM delayed the release of No Time to Die on Wednesday following plummeting global box-office sales as a result of the coronavirus.
China’s ticket sales have dropped by $1.91bn over the past two months, with many theatres closed for business.
Other cinemas in South Korea, Japan, Italy and Iran have also closed.
“Cineworld shares have tumbled today as traders are worried the business could be hit should the health situation ramp up in the UK,” CMC analyst David Madden said.
“Cinemas run the risk of seeing footfall severely drop if the coronavirus crisis grips the UK the way it has impacted northern Italy. The delay in the release of the new James Bond movie doesn’t help the firm.”