Cineworld report paints bleak picture for cinemas
STORY: Britain’s Cineworld on Friday (September 30) painted a bleak picture for cinema operators.
The Regal chain owner forecasted that admissions would remain below pre-health crisis levels for the next two years.
This is all while it tries to fix its finances under bankruptcy protection.
The world’s second largest movie theatre operator behind AMC Entertainment filed for U.S. bankruptcy protection earlier this month to try and restructure its debt and strengthen its balance sheet.
Low cinema attendance and a lack of blockbuster movies has left a gaping hole in its finances.
While third-quarter admissions were below expectations, the company expects stronger admissions in the fourth.
With the release of big-budget movies like "Black Adam," "Black Panther: Wakanda Forever" and "Avatar: The Way of Water".
Cineworld said numbers going to the cinema will remain below pre-crisis levels in the next couple of years as fewer mid-sized films are expected to release on the big screen.
But while the industry struggles, Cineworld's specific issue is the amount of debt it has amassed.
It took on debt to fund its $3.6 billion purchase of Regal Entertainment in 2017, and more to survive the health crisis.
Cineworld also faces damage claims after it scrapped a $1.65 billion takeover of Canada's Cineplex.
Lenders have given the company access to $785 million of $1.94 billion debtor-in-possession financing as part of the bankruptcy protection.
