Shareholders in Cineworld already face being virtually wiped out in any debt restructuring but the creditors who will end up controlling the business didn’t have much to be happy about either in Cineworld’s latest update.
Alongside first-half results showing a recovery in revenue and profit, unsurprising given the comparison was with a Covid restrictions blighted period, it is revealed that Cineworld has continued to haemorrhage cash and the company has revised down its expectations on admissions.
“While some of this may relate to a downward trend for the wider industry, the strong results posted by smaller rival Everyman recently suggests it may have something to do with Cineworld being unable to spruce up its venues to attract cinemagoers as so much of its capital was tied up servicing unsustainable debt,” AJ Bell investment director, Russ Mould, said.
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