Shares of Cineworld Group Plc (LON: CINE) today fell 17.4% premarket after the company released its earnings results for the 6-month period ended 30 June 2020 showing a $1.6 billion loss as compared to last year’s $139 million pretax profit.
The company reported a 67% drop in revenues for the 6-month period to $712.4 million as compared to the $2.15 billion recorded in H1 2019.
The cinema operator had term loans worth $3.6 billion as of 30th June with a revolving credit facility of $573.3 million, and it also managed to raise $360.8 million in additional capital during the review period.
The group’s losses were attributed to the closure of theatre’s in its key markets, that is the US and Europe, between mid-March up to late June/August with some major US markets such as New York not reopening and California remaining partially closed.
Cineworld share price
Alicja Kornasiewicz, Cineworld Group’s Chair said: “It is a great honour to take on the role of Chair despite these difficult times. I look forward to continuing to work with the Board and the experienced and hands-on management team through the COVID-19 crisis and to implement the very clear strategy to make Cineworld “The best place to watch a movie” while ensuring that we create significant value for all stakeholders.”
Mooky Greidinger, Cineworld’s CEO commented that: “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.”
Cineworld shares today fell 17.4% to trade at 40.08p having ended Tuesday’s session trading at 48.52p.