14th Jan 2022 08:35
(Alliance News) - Cineworld Group PLC announced on Friday that it generated positive cash flow in the fourth quarter of 2021 as a result of improvements in revenue.
For the second half 2021, the London-based movie house chain said December group box office and concession revenue was at 88% of 2019, the last period pre-pandemic.
October was its best month when compared to 2019 at 90%. For the UK and Ireland on their own, October was at 127% of 2019 revenue.
Cineworld said the recovery was driven by an "excellent" slate of movies including the record breaking 'Spider-Man: No Way Home' which it said was the first film to gross more than USD1.5 billion at the box office since the onset of the pandemic.
However, performance in the rest of the world through November and December was hurt by government restrictions to combat the spread of the Omicron variant of Covid-19. In November, revenue stalled at 59% of 2019 in the rest of the world.
Looking forward, Cineworld commented that there remains challenges ahead due to the Covid-19 situation, but it remains confident due to a "strong" 2022 film slate.
Cineworld also confirmed today that it has served an appeal against the Ontario Superior Court of Justice's decision in the case of Cineplex Inc.
The Toronto-based entertainment company had initiated proceedings against Cineworld's following Cineworld's termination of the arrangement agreement relating to its proposed acquisition of Cineplex in June 2020.
The proceedings alleged that Cineworld breached its obligations under the arrangement agreement and Cineplex claimed damages of up to USD2.18 billion.
The court granted Cineplex's claim, dismissed Cineworld's counter-claim and awarded Cineplex damages of USD1.23 billion for lost synergies and USD5.5 million for lost transaction costs to Cineplex. Cineworld has now appealed this decision.
Cineworld said that it will announce its full-year results on March 17.
Shares in Cineworld were up 2.5% at 39.75 pence on Friday morning in London.
By Heather Rydings; [email protected]
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