Cineworld Posts $3 Billion 2020 Loss Due To Coronavirus

Theater chain Cineworld, which also owns Regal stateside, is forging a path to re-open in the U.K. starting in May, but is expressing uncertainty "about its ability to continue as a going concern," according to The Hollywood Reporter. This sentiment is a graver doubling down on the chain's reaction last year to theaters losing its foothold on debut windows--last summer, Cineworld said striking a compromise between theatrical and home digital releases of new movies is a model it "do[es] not see any business sense in."

Cineworld recently reported lower 2020 financials, including its first-ever full-year loss, which helps explain the decidedly not-sunny outlook from the theater chain. But it's hardly a shock that it's feeling the effects of COVID-19--which has ravaged many chains around the world, large and small. The theater chain group in full reported a $3 billion loss in 2020, compared to a $212 million profit in 2019.

And just like in the United States with how individual citizens have recently gotten coronavirus-related stimulus relief, Cineworld has announced it's secured binding commitments for $213 million in additional cash to boost its financial flexibility "in the event of continued disruption as a result of COVID-19."

"Although the group is now looking to re-opening and recovery from the impact of the pandemic, material uncertainty around its ability to continue as a going concern remains," Cineworld said in a statement. "There can be no certainty as to the future impact of COVID-19 on the group. Governments strengthening of restrictions on social gathering may lead to closure of cinemas or studios delaying movie releases. This would have a negative impact on the group's financial performance and likely require the need to raise additional liquidity."

Cineworld anticipates re-opening its stateside theaters starting April 2. Cineworld CEO Moshe "Mooky" Greidinger said, "We have worked hard to strengthen the long-term prospects of the business and, looking forward, Cineworld enters 2021 confident about the next chapter in our development."