over 3 years ago • 2 mins
Cineworld announced plans to shut all 663 of its movie theaters worldwide after another Bond delay killed any hopes of a big payday 🎬
The massive movie house owns 536 Regal theaters in the US and 127 Cineworld and Picturehouse theaters in the UK. And ever since the pandemic struck, it’s seen its earnings knocked by compulsory shutdowns and, more recently, a serious shortage of new tentpole films. Studios, after all, don’t want to release their expensive blockbusters to small audiences and low ticket sales.
Tenet’s been the only major release since lockdowns loosened, and its poor performance hasn’t gone unnoticed. In fact, it may have prompted Disney to release Mulan on its Disney+ streaming service rather than in theaters, while the new and already-delayed James Bond film has just been postponed again until spring ✋ And seeing as Cineworld doesn’t see much point in keeping its cinemas open if there’s nothing to show, its 45,000 workers around the world are now at risk of losing their jobs.
Cineworld’s stock fell 40% on Monday, and US cinema chains AMC and Cinemark’s shares felt the effects too, falling 11% and 13% respectively. As for whether Cineworld will reopen further down the line, it depends on whether it can survive: the company lost over $1.5 billion in the first half of 2020, versus an almost $120 million profit in the first half of 2019 🎭 And with just $285 million left in the bank, the cinema chain will need to raise extra money however it can – and fast.
If Cineworld’s problems weren’t proof enough of a suffering leisure industry, restaurant chain Pizza Express’s recent bankruptcy protection filing in the US sure is. So much for dinner and a movie: looks like date nights are more about Uber Eats and Netflix these days.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.