Exhibition giant and Regal owner Cineworld Group said on Friday that it delivered positive cash flow in the fourth quarter thanks to improved control of revenue and costs and touting near-pre-convention levels. coronavirus epidemic in December, thanks to the support of the latest people Spiderman movie.
The film group, led by CEO Moshe “Mooky” Greidinger, also confirmed that it served notice of an appeal against the Ontario court’s decision against it for abandoning its plan to acquire Canada’s Cineplex. The court ordered them to pay C$1.23 billion (US$957 million) in damages to Cineplex.
The UK-based company, the world’s second-largest cinema chain after AMC Theatre, highlighted at the end of 2021 that it generated positive cash flow in October, calling it “an important milestone” in corporate recovery” after the pandemic. Given the company’s high debt load, generating positive cash flow is a particular focus of management.
Cineworld on Friday reiterated an earlier comment that box office and franchise sales for October 2021 amounted to 90% of the same month’s figure in the 2019 pre-coronavirus pandemic year, up from 60% achieved in October. 9, 54% in August and 50 percent in July.
And it added that in December it posted 88% of its December 2019 revenue on a constant currency basis, compared with 2019, after its performance weakened in November to 56%. In the US, December sales even hit 91% of same month sales in 2019, compared with 89% in the UK and Ireland, as well as 72% in the “rest of the world” segment.
It also celebrates positive revenue trends, along with ongoing challenges. “This rebound is fueled by a flurry of stellar films, including record-breaking Spider-Man: There’s no way home, Shang-Chi and the Legend of the Ten Rings, Venom, Black Widow, Sand dunes, Free boy, the eternal and There’s no time to die,” said the company. In the rest of the world, “November and December operations were affected by government restrictions due to the COVID-19 situation,” it noted. After all, the omicron variant of the coronavirus has led to the closure of cinemas in various markets around the world.
“Performance and attendance have steadily grown,” Cineworld summarizes the overall trends. “Changes in blocking media for November, mainly due to Top Gun: Maverick moving into May 2022, affecting the gradual recovery seen since reopening. December was particularly strong, bolstered by the success of Spider-Man: There’s no way home across all territories, becoming the first film to gross more than $1.5 billion at the box office since the COVID-19 pandemic began,” it added.
“We are pleased to see growing audience demand for a cinema experience, supported by a range of high-quality, high-performance films,” said Greidinger. “This proves that fans are continuing to opt for an unparalleled theatrical experience. We saw a rebound in moviegoers across our geographies, which generated a positive cash flow performance in the fourth quarter. ”
He added: “Spider-Man: There’s no way home has shown the importance of film distribution studios. Despite the challenges ahead, we are delighted to welcome customers to our cinemas to enjoy the highly anticipated films throughout 2022.”