What They Say
Just as we went to press, the BBC reported that CineWorld had seen its shares plunge 60% after a report in the WSJ said that the firm was preparing for bankruptcy. The company made no comment on the report.
The problems of the group after Covid have been compounded by the ‘limited’ number of big releases. The firm had hoped blockbusters such as the latest Bond film, Top Gun: Maverick and Thor: Love And Thunder would draw audiences back after Covid restrictions, the BBC said.
But it said earlier this week:
“Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
Cineworld has 9,189 screens across more than 750 sites. It operates in 10 countries, including the UK, the US, Poland and Israel, and employs more than 28,000 people.
What We Think
I would not have wanted to be in this business any time in the last two and a half years. The significant improvement in the availability of content via streamers combined with the great performance of home TV and audio systems are beginning to look as though they may cause permanent damage. (BR)
