This thread keeps getting of track and discussing the personal beliefs everyone has in the future of Cinema as a concept. This clouds the issue on £CINE as a company so here are some numbers and graphs to make me look clever -
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Cineworld are upto their eyeballs in debt, they’ve just had to borrow more recently (keep scrolling for more) which takes them to an eye watering $8.89bn
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$8.89bn is a big number but here is some context. In 2019 the last year before the pandemic affected their business they had an EBITA (earnings before interest, taxation & amortisation) of $1.46bn
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This would give you a DSCR (debt to coverage ratio) - or how many years it would take to pay back the debt of 6.06. Thats over 6 years IF they pay no tax, no interest, invest in nothing AND get back to 2019 revenue.
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This graph below shows that as far back as 2017 they’ve basically made next to no profit. That’s without the hit to the revenue from the pandemic and the extra debt that now needs servicing.
- I promised it in the first point, debt has just gone up because they’ve settled a lawsuit. They purchased regal cinemas in 2017 but the shareholders weren’t happy with the price they got. So they’re paying another $170m on top of the $3.6bn they agreed.
Sorry @Drew I started typing before you posted this same article.
Don’t listen to me though …
