The 海角视频’s largest cinema chain has warned that a second lockdown of movie houses would put it under financial pressure as it revealed half-year losses of £1.3billion.
said any further global coronavirus restrictions or delays to movie releases could force it to bolster its balance sheet further, by raising additional cash.
The group, which , swung to the hefty losses for the six months to June 30, 2020.
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From pre-tax profits of £110million a year ago it fell to a £1.3billion loss as revenues nosedived after lockdowns forced its cinemas to close.
The group said it was still in talks with lenders over breathing space for upcoming banking agreements, while it alerted over the potential need to raise further cash if it had to close its cinemas once more or if film releases were pushed back again.
But it said current trading has been “encouraging considering the circumstances”, with solid demand for Christopher Nolan’s action-thriller and spy-fi film Tenet released earlier in September.
Cineworld warned: “There can be no certainty as to the future impact of Covid-19 on the group.
“If governments were to strengthen restrictions on social gathering, which may therefore oblige us to close our estate again or further push back movie releases, it would have a negative impact on our financial performance and likely require the need to raise additional liquidity.”
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The firm has already raised US$360.8million in additional liquidity raised during the period, and negotiations with its banks remain ongoing in order to obtain covenant waivers in respect of December 2020 and June 2021.
The group said 561 of its 778 sites worldwide have reopened, including the one in Plymouth, with 200 theatres in the US, mainly in New York and California, six in the 海角视频 and 11 in Israel still closed.
It stressed the COVID-19 global pandemic had adversely affected the group's results because all sites had been closed between mid-March to late June/August. It meant group revenue fell to US$712.4million from 2019’s US$2,151.2million, severely impacted by cinema closures.
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The company stressed management's main priorities have been the safety of customers and employees, cash preservation and cost reduction.
Mooky Greidinger, chief executive of Cineworld Group Plc, said: "Despite the difficult events of the last few months, we have been delighted by the return of global audiences to our cinemas toward the end of the first half, as well as by the positive customer feedback we have received from those that have waited patiently to see a movie on the big screen again.
“The impact of COVID-19 on our business and the wider leisure industry has been substantial, with the closures of all of our cinemas worldwide for an extended period. During this unprecedented time, our priority has been the safety and health of our customers and employees, while at the same time preserving cash and protecting our balance sheet.
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“Our mitigating actions included reducing and deferring costs where possible; making use of government support schemes for our employees; partially delaying capital investments; and suspending our dividend. We have also raised an additional US$360.8million of liquidity to support our business.
“Current trading has been encouraging considering the circumstances, further underpinning our belief that there remains a significant difference between watching a movie in a cinema - with high quality screens and best-in-class sounds - to watching it at home.