But today the company revealed that recovering ticket sales combined with cost-savings measures saw it return to generating positive cash flow in October.
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It was the first time the firm had returned to the black since Covid hit, and bosses called it “an important milestone in the company’s recovery”.
Cineworld said its revenue performance for the four months to October 31 “has been underpinned by discipline on costs where the company has been focused on streamlining operations wherever possible”, despite “some inflationary cost increases”.
Like other leisure firms, the chain will be facing increasing wage bills and utilities costs.
Jefferies’ James Wheatcroft said Cineworld’s sales growth trends reported this morning “significantly undermine the debate around cinema’s consumer relevance post-pandemic”.
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AP
In a note entitled “roll out the red carpet”, he pointed out that Cineworld’s main markets - the US, UK and Israel - are countries with high vaccination rates, making severe restrictions being re-implemented this winter less likely.
He said: “With operating and financial leverage, plus encouraging box office trends, Cineworld is well-placed to capitalise on the consumer return to cinemas.”
