Regal Owner Cineworld Says No "Material Impact" on Admissions From Coronavirus

Courtesy of Cineworld

Cineworld in London's Leicester Square

The exhibition giant reports "good levels of admissions in all our territories" and says that despite the delay of the new James Bond movie studios "currently remain committed to their release schedule."

Exhibition giant and Regal owner Cineworld Group said Friday it has not seen “any material impact" on cinema admissions due to coronavirus so far.

The news came a day after its stock plunged as analysts and investors reacted to news of the delay of the release of the new James Bond movie to November.

The virus, which causes the respiratory illness known as COVID-19, has already led to Chinese theaters to be shuttered. Various media and entertainment industry events have also been postponed or canceled. 

"Given the impact that COVID-19 is having on the broader markets, we feel it is important to update our shareholders on current trading," Cineworld said. "Thus far, we have not observed any material impact on our movie theater admissions due to COVID-19. Following an increase in admissions in the first two months of the year against the same period in the previous year, we continue to see good levels of admissions in all our territories, despite the reported spread of COVID-19."

Added the company: "Although the release of the new Bond movie has been postponed to November 2020 largely due to closure of cinemas in the Asian markets, the studios have advised us that in the countries in which we operate, they currently remain committed to their release schedule for the coming months and remainder of the year."

While there is "no certainty as to the future impact of COVID-19," Cineworld said it was "taking measures to ensure that we prepare our business for all possible eventualities." It concluded: "Should conditions relating to COVID-19 continue or worsen, we have measures at our disposal to reduce the impact on our business including, but not limited to, capital expenditures postponement and cost reduction."

Cineworld said its 2019 revenue would hit about $4.4 billion, with adjusted earnings before interest, taxes, depreciation and amortization of $1.03 billion.