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Gloucestershire Business News

Cineworld sees large loss after forced covid closures

Cinema chain Cineworld Group Plc has revealed its latest financial results, warning that it may need to raise additional funds in the event of another lockdown.

The business reported a $1.6billion (£1.3bn) loss for the first six months of 2020, blamed on forced closures of cinemas.

It has said that it was able to reopen 561 of 778 sites worldwide as restrictions have eased, but warned that "there can be no certainty as to the future impact of Covid-19 on the group".

Group revenue for Cineworld dropped to $712.4 million in the six months to June, in comparision to $2.15bn for the same period in 2019.

Pretax profits in the first six months of 2019 hit $139.7million, very different to the $1.6billion for the same period in 2020.

Cineworld's interim results mentioned that it may have to take action to raise additional funds if restrictions were tightened.

It reads: "If Governments were to strengthen restrictions on social gathering, which may therefore oblige us to close our estate again or further push back movie releases, it would have a negative impact on our financial performance and likely require the need to raise additional liquidity."

Mooky Greidinger, chief executive officer of the business, remains optimistic. He said: "Despite the difficult events of the last few months, we have been delighted by the return of global audiences to our cinemas toward the end of the first half, as well as by the positive customer feedback we have received from those that have waited patiently to see a movie on the big screen again.

"Current trading has been encouraging considering the circumstances, further underpinning our belief that there remains a significant difference between watching a movie in a cinema - with high quality screens and best-in-class sounds - to watching it at home."

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