Cineworld Group PLC yesterday said that it would ask shareholders to approve a raise in its debt ceiling next month to allow it to borrow more money to shore up its shattered finances after reporting a US$3 billion loss for last year.
The firm, forced by COVID-19 lockdowns to shut most of its nearly 800 theaters in October last year, temporarily leaving 45,000 out of work, posted a pretax loss of US$3.01 billion last year, its first ever loss as a listed company, compared with a profit of US$212.3 million in 2019.
The company, which is set to reopen its US chains next month armed with an exclusivity deal with Warner Bros, said that it has secured commitments for a new US$213 million convertible bond to safeguard itself from a further hit due to the health crisis.
Photo: Phil Noble, Reuters
“Strong pent-up demand for affordable out-of-home entertainment anticipated post reopening due to the COVID-19 pandemic as indicated by the theatrical industry performing well in reopened markets such as China, Japan and Australia,” Cineworld said.
However, the London-listed company added that uncertainty over its ability to continue operating remained, as it reported an 81 percent plunge in revenue to US$852.3 million for last year.
Cinema operators, devastated by empty halls during the lockdowns, are also challenged by the growing shift to streaming services and lower content due to disruptions to the film industry.
This year could be better for the industry as many big-budget productions such as Marvel’s superhero film Black Widow, the James Bond movie No Time to Die and Godzilla vs Kong are set to see their day on the big screen.
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