7th Apr 2020 09:03
(Alliance News) - Cineworld Group PLC on Tuesday said it has suspended scheduled and upcoming dividend payouts in an effort to conserve cash during the Covid-19 lockdowns.
The FTSE 250-listed cinema operator said it will not pay either the 2019 fourth quarter dividend of 4.25 cents or any quarterly dividends for 2020.
It is restricting capital expenditure to preserve cash and also is in spending discussions with its landlords, film studios and major suppliers. Executive directors have agreed to defer full payment of salaries and bonuses, the company said, adding that the fees of non-executive directors have also been deferred.
All of Cineworld's 787 cinemas across 10 countries has been closed as a result of Covid-19.
It said it will "monitor progress" of its proposed acquisition of Canadian peer Cineplex Inc. In December, Cineworld Group said it would buy Cineplex for CAD2.8 billion, about GBP1.62 billion.
The London-based company also said it is discussing ongoing liquidity requirements with its revolving credit facility banks.
The stock was trading 29% higher at 51.27 pence each on Tuesday morning in London. However, it remains less than a quarter of its value at the start of the year.
By Ife Taiwo; [email protected]
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