Regal Owner Cineworld Reveals Low Admissions, Warns of ‘Very Significant Dilution’ of Equity Interests

variety.com:

Naman Ramachandran Exhibition giant Cineworld has revealed lower than expected cinema admissions, which could potentially lead to equity dilution, going forward.In an update on Wednesday on its current trading, liquidity position, capital structure and the ongoing impact of the COVID-19 pandemic on the group, Cineworld said: “Despite a gradual recovery of demand since re-opening 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.”Admissions for the group climbed from 54.4 million in 2020 to 95.3 million in 2021.

The company, which owns Regal Cinemas in the U.S., recorded a $708.3 million loss before tax for the full year ending Dec. 31, 2021, a vast improvement from the $3 billion loss in 2020.

However, the group’s net debt, excluding lease liabilities, increased by $492.7 million from $4.33 billion to $4.84 billion.Cineworld said it was “taking proactive steps to ensure it has the balance sheet strength and flexibility to adapt to market conditions.