Cineworld : reports $500m+ loss as it mulls US listing of Regal
08/12/2021 | 05:10am EDT
Cineworld Group, the world’s second largest cinema chain, has published half year results revealing the severe financial impact of lockdown restrictions.
Cineworld’s revenue fell by 59 per cent, from $712.4m (£513.8m) in the first half of 2020 to $292.8m in 2021. The Group reported an adjusted EBITDA loss of $21.1m – down 140 per cent from a profit of $53.0m last year with an adjusted loss after tax of $581.8m.
Lockdown restrictions have hit Cineworld hard, forcing the company to close the majority of its 789 sites between January and April 2021. Admissions for the first six months of 2021 totalled 14.1m, a year on year decrease of 70.3 per cent.
Cineworld has said it is considering listing its US-based movie chain Regal on Wall Street in a bid to raise much-needed funds. The majority of the company’s revenue comes from the US since its purchase of Regal in 2018 and a listing could help to cover recent losses.
Half year results show that Cineworld has had to increase its borrowings, excluding cash to $4.6bn – a rise of $80.9m since the end of 2020. A further $200m loan was raised in July.
Alicja Kornasiewicz, Chair of the Cineworld Group said: “Cineworld has continued to deliver strong operational and cash control despite the challenging trading conditions we have been faced with in light of COVID-19.”
Mooky Greidinger, CEO of Cineworld Group said: “Trading has been encouraging since we started to re-open our sites in April” adding that he was confident the company could “deliver a return to growth” as it recovers from the pandemic
The lifting of lockdown restrictions has allowed the majority of Cineworld’s sites to reopen and the company said it anticipates strong trading in Q4 subject to the Covid-19 situation.
In the wake of news about the possible listing the company’s share price has today jumped 7.21 per cent.
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