Cineworld reports revenue boost of 127 per cent compared to pre-pandemic levels

Cineworld’s revenue has grown steadily since reopening and the group touched 90 per cent of pre-pandemic levels in October in its recent trading update.

In the UK and Ireland, box office and concession revenue was up 127 per cent compared to 2019 figures.  This improvement in revenue has meant the group generated positive cash flow, which it regards as “an important milestone in the Company’s recovery”.

The cinema operator added that the UK and Ireland were experiencing greater demand than in 2019 since the reopening in April 2021.

The world’s second-largest theatre operator, also said the recovery has been driven by an excellent slate of movies including “Black Widow” and “No Time to Die” and anticipates upcoming blockbusters to perform well if there is no deterioration in the COVID-19 situation.

Mooky Greidinger, chief executive commented: “We are thrilled to see audiences returning in significant numbers. Our partnerships with the studios are as strong as ever and with the incredible movie slate to come, there are real grounds for optimism in our industry.”

“Whilst there are challenges ahead, I believe these efforts have positioned us for great success in the future and we are all looking forward to continuing to welcome our customers to the best place to watch a movie.”

However, as Russ Mould, analyst at AJ Bell, said: “The one thing missing from Cineworld’s update is the profit figure. We know the company has been trying to strip out costs, but it also has inflationary pressures and oodles of debt that needs repaying.”

“Now is not the time to push through big ticket price hikes. Not only are family finances under pressure from higher energy, fuel and food bills, but cinema operators also need to use cheaper prices as a way of attracting anyone still on the fence about wanting to spend two hours in a confined space with a load of strangers.”