Cineworld is still putting faith in movie-goers after Bond film delay
CINEWORLD SAID the coronavirus outbreak has not yet dampened demand as it sought to calm fears after the release of the new James Bond film was delayed due to the outbreak.
However, shares in the cinema chain fell despite assurances that it has not seen any significant impact on bookings yet and continues to see good admission figures across all its markets.
It comes amid worries that cinema firms will suffer plummeting demand as coronavirus continues to spread, highlighted by the decision earlier this week to postpone the release of the No Time To Die Bond movie from April to November as cinemas across Asia have closed.
Some film industry analysts have reportedly estimated the outbreak could wipe £4bn off the global box office.
Despite this, Cineworld said studios have insisted they remain committed to their film schedules for the rest of the year.
It warned that there can be “no certainty as to the future impact of Covid-19”.
“Should conditions relating to Covid-19 continue or worsen, we have measures at our disposal to reduce the impact on our business including, but not limited to, capex (capital expenditure) postponement and cost reduction,” it added.
It also revealed a dip in earnings in figures released ahead of its full-year results due next week, reporting a 4 per cent drop in underlying earnings to £794m.
This came as it said 2019 revenues fell 7 per cent to £3.4bn.
Cineworld does not have any theatres in Asia and generates most of its revenue in the US.
Box office revenues in China fell 80 per cent over the first eight weeks of the year, according to Morgan Stanley.
The top 10 films account for around 40 per cent of box office revenue in a typical year, Peel Hunt analysts said.