Mar 25, 2021
Cineworld looks to raise more debt after posting $2bn loss
Cineworld is asking shareholders to suspend its borrowing limits and raise more debt after posting a record $2.3bn loss. Closure of its theatres since mid March last year meant revenue slumped 80.2 per cent to $852.3m. The company posted a worse than expected $2.3bn operating loss for 2020, compared with a profit of $725m in 2019, with net debt ballooning to $8.3bn. Cineworld plans to reopen cinemas in the US, its biggest market, from the beginning of April with UK screens reopening in May. The company predicted "Pent-up demand for affordable out-of-home entertainment", but cautioned that recovery was likely to be "Volatile" given uncertainty around reopening restrictions, the amount of film content available and the desire of consumers to return. The company posted a £106.3m operating loss for 2020, widening from an £84.7m loss the year before. The US-domiciled iShares Global Clean Energy ETF and its European Ucits equivalent might also need to offload more than 10 per cent of the free-float market capitalisation of some other companies if the shake-up proceeds as proposed next month, according to Société Générale. Bryce Elder A straightforward strategy of finding new customers then identifying more IT products for them to buy has delivered 15 straight years of revenue and profit growth at mail-order software business Softcat - and year 16 already looks to be in the bag.
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