Norstugan

Main Menu

  • Home
  • Norway
  • Oslo
  • Norway Politics
  • Norway Culture
  • Norway Economy

Norstugan

Header Banner

Norstugan

  • Home
  • Norway
  • Oslo
  • Norway Politics
  • Norway Culture
  • Norway Economy
Norway Economy
Home›Norway Economy›Cineplex Gets Relief From Lenders As Third Quarter Revenue Dips 85%

Cineplex Gets Relief From Lenders As Third Quarter Revenue Dips 85%

By Chavarria Mary
April 7, 2021
0
0

Cineplex Inc. has reached an agreement with lenders to ease its financial commitments until the second quarter of 2021 after the movie theater chain saw revenues drop due to capacity restrictions in theaters.

The Toronto-based company announced third quarter results that fell short of analysts’ expectations. Revenue fell 85% to $ 61 million (US $ 46.4 million) from $ 418.4 million a year ago. Analysts were looking for $ 65.8 million.

Key ideas

– The company tries to slow down the rate of use of cash. It has burned about $ 16.6 million in cash per month in the third quarter and has burned between $ 15 million and $ 20 million per month since the start of the pandemic. It takes advantage of government programs to subsidize employee salaries and seeks to sell its head office to raise funds.

– The company had approximately $ 460 million ($ 350 million) outstanding under its credit facilities as of September 30, according to a statement.

– Cineplex gradually reopened its theaters over the summer to limited capacity, but had to temporarily close them in parts of Canada in October after a second wave of COVID-19. Attendance at movie theaters fell 91%. in the third trimester.

It will not reopen its locations in Toronto, Ottawa and Peel Region anytime soon, even if restrictions are relaxed due to concerns “from a financial standpoint,” spokeswoman Sarah Van said earlier. Lange.

Like other chains, Cineplex suffers from the backlog of several big budget films. Last month, Metro-Goldwyn-Mayer postponed the release of the James Bond film “No Time To Die” until April, pushing shares down to an all-time high.

Bloomberg previously reported that the last big movie of 2020, “Wonder Woman 1984,” could premiere on HBO MAX only a week or two after a theatrical release. “We haven’t discussed this with our partner studios,” CEO Ellis Jacob said in an interview on Friday. “I am not aware that they are going in that direction.”

Cineplex climbed 32% on Monday after Pfizer Inc. said its vaccine, developed with BioNTech SE, protects most people from COVID-19. The stock is down 81% this year and was removed from the S & P / TSX Composite Index on September 21.

“As the second quarter of 2021 begins, things are going to change dramatically, and that will be on the positive side as there is a whole slew of great films set to be released,” Jacob said. “We will go in the right direction.

Related posts:

  1. rakesh jhunjhunwala: Rakesh Jhunjhunwala doubts Internet companies; bets on TaMo, PSB, small private lenders
  2. Sensex | RIL: the gains of private lenders outweigh the 9% loss of the RIL; Sensex adds 144 points
  3. Direct loan startups attract investor interest
  4. IL&FS: lenders approve sale of three IL & FS road projects

Recent Posts

  • Eurovision has always been a political performance forum
  • Nordic Bridges reveals the latest highlights of its spring program
  • PSA Norway denounces Equinor for corrosion of piping on the Troll C platform
  • Stockholm Mean Machines earn solid win over Oslo Vikings to remain undefeated in group
  • What is the “Great Replacement Theory” and how does it fuel racist violence?

Categories

  • Norway
  • Norway Culture
  • Norway Economy
  • Norway Politics
  • Oslo

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • April 2021
  • Privacy Policy
  • Terms and Conditions