Cineworld shares dive as lack of blockbusters weighs on admissions

theguardian.com:

Shares in Cineworld plunged more than 40% after the world’s second-largest cinema chain said that a lack of blockbuster films has led to lower-than-expected admissions.

The London-listed company, which has run up debt of almost $10bn as losses soared during the pandemic, said despite the success of hits such as Top Gun: Maverick starring Tom Cruise, not enough films were hitting cinemas.

“Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations,” Cineworld said. “These lower levels are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”

While cinemas are expected to benefit from films such as James Cameron’s “Avatar 2” later this year and Marvel releases including Thor: Love and Thunder, Hollywood has released fewer films than in a typical summer.

This is due to the knock-on effect of filming disruptions through the pandemic, and also films in some mid-budget genres, such as romantic comedies, often being released directly on streaming services.

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The company, which operates 9,000 screens in 10 countries including the US and the UK, admitted about 95 million moviegoers in 2021, up 75% on the 54 million in 2020 but well below the 275 million who attended before the Covid crisis.

“The group has been taking proactive steps to ensure it has the balance sheet strength and flexibility to adapt to market conditions,” the company said.

Cineworld said it was in discussions with stakeholders over strategic options to