The Cineworld Group plc (LON: CINE) share price edged 5% higher after releasing a trading update for the six months to 31 December 2021.
The cinema operator grew its revenues in July, August, September, October and December, with November being the only month where its revenues fell due to government restrictions in most countries after the emergence of the Omicron variant.
The postponement of “Top Gun: Maverick” from November 2021 to May 2022 also contributed to Cineworld’s weak performance in November.
Cineworld’s December revenues surged higher, driven by the impressive performance of “Spider-Man: No Way Home” across all the ten countries in which the company operates as the film grossed over $1.5 billion globally.
Other blockbuster movies such as “Spider-Man: No Way Home”, “Black Widow”, “Shang-Chi and the Legend of the Ten Rings”, “Dune”, “Venom”, “Free Guy”, “No Time to Die”, and “Eternals”.
Investors were pleased to hear that Cineworld generated positive free cash flow in Q4 after implementing drastic cost-cutting measures combined with the revenues generated by the above movies.
Mooky Greidinger, Cineworld’s CEO, commented: “We are pleased to see continued strong demand amongst audiences for cinema experiences, supported by a slate of high-quality and high-performing movies. This demonstrates that fans are continuing to choose the unrivalled theatrical experience. We have seen a recovery in theatre attendances across our geographies, which generated a positive cash flow performance for Q4. “Spider-Man: No Way Home” has shown the importance for studios of cinematic releases”.
“Whilst there are challenges ahead, we are excited to welcome customers to our cinemas to enjoy the highly anticipated slate of movies throughout 2022. We are continuing to implement guidelines to ensure our cinemas are a safe environment for our customers, and I want to thank everyone across our team who make it possible for our customers to experience the best place to watch a movie.”
The cinema operator also confirmed that it had started the appeal process against the Cineplex damages award worth £700 million by the Ontario Superior court of Justice on Wednesday, 12 January 2022.
Investors were pleased with the positive results, but Cineworld still has a long way to go before it is in the clear. We have covered Cineworld’s predicament in greater depth within previous articles linked below.
*This is not investment advice. Always do your due diligence before making investment decisions.
Cineworld share price.
Cineworld shared edged 5.02% higher to trade at 40.76p, rising from Thursday’s closing price of 38.81p.
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