6th Mar 2020 08:11
(Alliance News) - Cinema chain operator Cineworld Group PLC on Friday said it has not seen any material impact so far on theatre admissions from the spread of coronavirus, as it reported key financial numbers for 2019.
Shares in Cineworld opened 5.5% lower at 114.80 pence each in London. Citigroup cut the stock to Neutral from Buy.
"Following an increase in admissions in the first two months of the year against the same period in the previous year, we continue to see good levels of admissions in all our territories, despite the reported spread of COVID-19," the FTSE 250-listed company said in a unscheduled trading update.
For 2019, the company anticipates reporting revenue of USD4.37 billion, up 6.1% from USD4.12 billion recorded in 2018. Adjusted earnings before interest, tax, depreciation and amortisation is penned at USD1.03 billion, up 12% from USD925.4 million. Net debt, excluding lease liabilities, is predicted at USD3.48 billion versus USD3.73 billion.
Annual results are slated to be released by the company on Thursday next week.
Although the latest James Bond movie release has been delayed to November due to closure of cinemas in Asian markets, movie studios have advised Cineworld that they currently remain committed to their release schedule for the coming months and remainder of 2020, it said.
On Wednesday, MGM and Universal Studios announced that the release of the 25th instalment of the James Bond franchise would be pushed back seven months due to coronavirus. The previous James Bond film 'Spectre' raked in nearly USD900 million at the global box office in 2015.
'No Time to Die' was set to be released at the end of April, but will now debut in November. The highly anticipated movie is actor Daniel Craig's final outing as the eponymous superspy and will feature Academy Award winner Rami Malek as the primary antagonist.
Other high-profile films slated for release in the first half of 2020 include the latest Fast & the Furious instalment - which stars Vin Diesel and John Cena - in May. In June, DC's Wonder Woman sequel and Top Gun: Maverick, which sees Tom Cruise reprise his role from the 1986 original, are set to be released.
'Mulan' – Disney's China-set live-action blockbuster – has been placed on hold in China, AFP reported. Industry estimates put the financial loss from Asian theatres already shuttered this year around USD2 billion.
London-based Cineworld said that it is preparing the business for all possible eventualities as there can be no certainty over the future impact of COVID-19.
"Should conditions relating to COVID-19 continue or worsen, we have measures at our disposal to reduce the impact on our business including, but not limited to, capex postponement and cost reduction," the company said.
By Tapan Panchal; [email protected]
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