CineWorld Loses Billions
Thursday 25th March 2021 10:06 am
CineWorld incurred a $ 1 billion loss in 2020, as sales decreased and the company’s asset value decreased by $ 1.3 billion. This was reported by characters from the British film group Thursday.
767 Cineworld cinemas remain closed due to the Corona crisis. As a result, revenues decreased by more than 80 percent from $ 4.4 billion to $ 852 million.
The EBITDA score decreased from 1.59 billion positive to a loss of $ 115 million.
The group reduced its assets of $ 1.34 billion, and the net loss amounted to $ 2.65 billion. A year ago that was $ 180 million in profit.
The company expects to reopen cinemas in the US from April 2 and in the UK from May 17. CineWorld predicts that cinemas in the rest of the world will also open from May. The company expects a surge in demand for affordable outdoor entertainment after the economy reopens. The film group reported that China, Japan and Australia have already demonstrated this.
CineWorld raised $ 811 million in financing, including guarantees on shares, and another $ 213 million pledged by a group of institutional investors for a $ 213 million convertible bond.
Government aid should provide an additional $ 200 million in additional cash.
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