Cineworld Group is in the final stages of a restructuring plan after filing for Chapter 11 bankruptcy earlier this month. The Cineworld Group has also released positive interim results for six months to June 30, 2022.
Overall revenue increased to $1.5b, from $292.8m in that same period last year. There was a gross profit (424.5m) and an operating profit (57.3m), compared to an operating loss (288.1m) in the same period last.
The company’s debt position worsened, however, standing at $5,2b on June 30, against $5.03b on December 30, 2021.
The exhibitor, which owns 747 sites in 10 countries and has 9,139 screens in 10 other territories, was led by the U.S.A. & U.K. but cautioned that it didn’t expect the box office will return to pre-pandemic levels in 2023 / 2024.
It provided details on admissions and said that, after a slow start to Q1, due to a lack major releases and customer concerns about the Omicron variant of the Omicron, total admissions had increased to 82.8 million in the six-month ended 30 June 2022. This was split between 33.6m and 49.2m Q1, for a total box office total of $833.6m.
This was 68.7m more admissions, or 487% more than the same period of 2021, when there were 14m admissions and a box office of $10.4m.
It was still lower than 2021 levels. This represents 61% of admissions made in the first six months 2019 (the last full financial year not affected by the pandemic).
According to the group, it had revised its medium- and short-term cinema admissions forecasts due to a slower recovery in 2022 and indications that there would be a lower number of theatrical releases in 2023-2024. This would ensure admissions remain below their pre-pandemic levels through 2025.
“This has been a challenging period for Cineworld due to the unprecedented impact of the COVID-19 pandemic on our business and its lagging and continuing disruption to film schedules,”Mooky Greidinger is Cineworld CEO.
The success of films like “The Shining” has made him optimistic about the future of the company. Maverick is the Top Gun Doctor Strange in The Multiverse Of Madness.
“We have been encouraged by the gradual ongoing recovery in our performance over recent months – as pandemic restrictions ended, guests returned for popular movies,”He stated.
“The performance of key blockbusters in the first half, including Top Gun: Maverick; Doctor Strange in the Multiverse of Madness; Jurassic World Dominion; The Batman, illustrates the continued demand for such special cinematic experiences,”He concluded.
According to the group, they were also encouraged by the rise in average ticket prices (ATP) as well as spend per person (SPP).
“Compared to the same period in 2021, ATP was up by 1.1% while SPP was up by 2.6%. This increase is significantly more pronounced when compared against pre-pandemic levels, with ATP up 7.9% and SPP up 26.6% in the same period in 2019,”According to the group.
However, the group pointed out that there were no signs that ATP or SPP would return in the near- or medium-term to their pre-pandemic levels, particularly with the looming cost of living crisis.
Greidinger and Alicja Kornasiewicz, chair of Cineworld Group, both addressed the company’s Chapter 11 proceedings.
Kornasiewicz explained that the restructuring process was set off by filing for Chapter 11 in America. “create a more effective business and strengthened capital structure to better position Cineworld for the future.”