The company is struggling Cineworld claims Q3 admissions are weak as cash flows decrease
(Reuters) British Cinema chain owner Cineworld Group said on Friday admissions for the third quarter of the year were lower than expectations and will be below levels seen in the coming two years following an overall loss that was smaller than half-yearly.
The world’s second largest movie theatre operator, behind AMC Entertainment (NYSE:AMC) filed for U.S. bankruptcy earlier in September to help restructure its debt and repair its finances in the wake of declining theater attendance and a dearth of blockbuster blockbuster movies.
Cineworld was cash-flow positive with $131 million as of the month’s close. against 354 million at the close of December.
The company recorded losses before taxes of $364.9 million in the period from June to June, which was a drop from $576.4 million in the previous year. Net debt was $8.81 billion, including lease obligations in comparison to $8.9 billion as of the close of December.
The release of major-budget films such as “Black Adam”, “Black Panther: Wakanda Forever” and “Avatar: The Way of Water” could increase admissions for the 4th quarter, Cineworld said.
