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Cineworld Releases Interim 2022 Results, Forecasts Box Office To Remain Below Pre-Pandemic Levels Through 2025: Deadline

Cineworld Releases Interim 2022 Results, Forecasts Box Office To Remain Below Pre-Pandemic Levels Through 2025: Deadline

Ailing exhibition giant Cineworld Group, which is currently finalizing a reorganization plan after filing for Chapter 11 bankruptcy in the US earlier this month, has posted encouraging interim results for the six months to 30 June 2022.

Total revenue increased to $1.5 billion from $292.8 million in the same period of 2021, for Adjusted EBITDA of $364.2 million (vs. -$21.1 million in 2021) and operating profit of $57.3 million, compared to an operating loss of $208.9 million in the same period last year.

However, the company’s debt position worsened to $5.2 billion on June 30, down from $5.03 billion on December 30, 2021.

The exhibitor, which operates 747 sites and 9,139 screens in 10 territories worldwide, led by the US and UK, said tickets had started to pick up over the period as final Covid restrictions were lifted. -19, but warned that he did not expect the box office to increase. return to pre-pandemic levels in 2023 and 2024.

Detailing admissions, he said that after a slow start to the first quarter due to a lack of major releases and customer concerns around the Omicron variant, total admissions had strengthened to reach 82.8 million. in the six months ending June 30, 2022, split between 33.6 million in the first quarter and 49.2 million in the second quarter, for a total box office of $833.6 million.

This represented 68.7 million more admissions, or a jump of 487%, than the same period in 2021, in which there were 14 million admissions for a box office of $140.4 million.

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The figure was still below 2021 levels, accounting for about 61% of admissions achieved in the first six months of 2019, the last full financial year not affected by the pandemic.

The group said it had revised its short- and medium-term cinema admissions forecasts, due to a slower-than-expected recovery in 2022 and signs of lower volume of theatrical releases in 2023 and 2024, which would keep admissions below pre-pandemic levels through 2025.

“This has been a challenging period for Cineworld due to the unprecedented impact of the COVID-19 pandemic on our business and its continued disruption and lag in movie schedules,” said Cineworld CEO Mooky Greidinger.

He expressed his optimism for the future of the business thanks to the success of films such as Top Gun: Maverick Y Doctor strange in the multiverse of madness.

“We have been encouraged by the ongoing gradual recovery of our performance in recent months: when the pandemic restrictions ended, guests returned to see popular films,” he said.

“The performance of key blockbusters in the first half, including Top Gun: Maverick; Doctor Strange in the Madnes Multiverseyes; jurassic world domain; The Batman illustrates the continuing demand for such special cinematic experiences,” he added.

The group said it had also been encouraged by the increase in average ticket prices (ATP) and spending per person (SPP).

“Compared to the same period in 2021, the ATP increased by 1.1%, while the SPP increased by 2.6%. This increase is significantly steeper compared to pre-pandemic levels, with ATP up 7.9% and SPP up 26.6% over the same period in 2019,” the group said.

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However, the group noted that there was no indication that ATP and SPP would return to pre-pandemic levels in the short to medium term, especially with the mounting cost-of-living crisis as a backdrop.

Greidinger and Alicja Kornasiewicz, president of Cineworld Group, addressed the company’s Chapter 11 proceedings.

Kornasiewicz said the restructuring process put in place by filing for Chapter 11 in the US “would create a more effective business and a strengthened capital structure to better position Cineworld for the future.”

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