15th Nov 2021 09:16
(Alliance News) - Cineworld Group PLC on Monday said revenue came tantalisingly close to pre-virus levels last month, as a strong slate of releases drew filmgoers back to the cinema.
Promisingly, Cineworld was free cash flow positive once again in October, "an important milestone" as it plots its recovery from Covid-19 hurt. Its UK & Ireland arm alone saw revenue top 2019 levels in October.
"Since reopening our estate in April 2021, performance and attendances have steadily grown," Cineworld said.
In October, group revenue amounted to 90% of 2019 levels, growing from 60% in September, 54% in August and 50% in July.
In the US, October revenue was at 80% of 2019 level, up from 54% in September and 45% in each of August and July.
UK & Ireland revenue finally got back above pre-virus levels in October, having been at 72% of 2019 in September, 76% in August and 54% in July.
"As a result of this improvement in revenue and the cost measures implemented, the group generated positive cash flow in October, an important milestone in the company's recovery," Cineworld said.
An "excellent" film slate, including the latest James Bond title, finally released after a several delays, has boosted trading recently.
There are other eagerly anticipated titles to come, including the latest Matrix film. Cineworld expects upcoming releases to perform well, subject to there being "no deterioration in the Covid-19 situation".
Chief Executive Mooky Greidinger said: "We are thrilled to see audiences returning in significant numbers. Our partnerships with the studios are as strong as ever and with the incredible movie slate to come, there are real grounds for optimism in our industry. I would especially highlight the great performances we saw from our newly refurbished cinemas in the US. These new cinemas clearly support our strategy to enhance the cinema experience for all our customers."
The pandemic proved painful for Cineworld, which had to close its estate as part of government-imposed lockdown measures.
Revenue plunged 81% to USD852.3 million in 2020 from USD4.37 billion. The west London-based firm swung to a pretax loss of USD2.65 billion from a USD180.3 million profit in 2019.
Back in March, Cineworld noted it raised over USD800 million in investment during the virus hit 2020.
Cineworld shares were 11% higher at 69.67 pence each in London on Monday morning, one of the best mid-cap performers.
By Eric Cunha; [email protected]
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