Cineworld Sees Revenue Drop 11% in First Half of 2019, Looks to Latter Half to Hit Targets08/08/2019
Revenues for Cineworld were down 11% in the first six months of 2019 compared to the same period last year, despite the strong performance of tentpoles such as “Avengers: Endgame” and “Captain Marvel.” The exhibition giant blamed the drop on the timing of major releases and said it was nonetheless on track to hit its full-year targets on the strength of several hotly anticipated movies launching in the second half of the year.
Cineworld CEO Mooky Greidinger said that a strong July boded well for the group. “The Lion King” and “Spider-Man: Far From Home” both hit theaters last month.
“Supported by a strong box office performance in July and a very encouraging second-half release schedule, we maintain our outlook for the full-year performance of the business,” Greidinger said. “Very strong admissions for ‘The Lion King’ demonstrated the ongoing popularity of the theatrical business around the globe, while ‘Avengers: Endgame’ was the highest-grossing movie of all time. Still to come are ‘It Chapter Two,’ ‘Joker,’ ‘Frozen 2,’ and one of the most anticipated movies in recent years, ‘Star Wars: The Rise of Skywalker.’
Admissions hit 136 million in the first half of the year, compared to 159 million in the same period a year earlier. EBIDTA profit was down 12% at $488.5 million. Revenue of $2.2 billion was down 11%. The comparative period includes four months of Regal Entertainment Group’s results after Cineworld completed acquisition of the chain in February 2018.
Cineworld said it is on track to deliver $150 million of synergies from the acquisition.
“Following the successful acquisition of Regal in 2018, management will continue to focus on generating further cost savings as well as develop our long term refurbishment plans in the United States, all of which will continue to bring significant benefits and returns to the group and shareholders for years to come,” said Anthony Bloom, chairman of Cineworld.
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