Coronavirus fails to screen out Cineworld filmgoers amid box office fears
Despite "good levels" of admissions, the cinema chain cautions there can be "no certainty as to the future impact of COVID-19".
Friday 6 March 2020 11:22, UK
Moviegoers have failed to be deterred by coronavirus, Cineworld has said as it sought to calm investor jitters after the release of the latest James Bond film was delayed due to the outbreak.
However, despite assurances that it continued to see "good levels" of admissions across all its markets, shares in the cinema chain were down by up to 7% in early trading.
It follows fears that cinemas could be hit by falling demand with the spread of COVID-19, the disease caused by the novel coronavirus.
This was underlined by the decision to postpone the release of the Bond movie from April to November due to the outbreak closing cinemas across Asia.
Some film industry analysts have reportedly estimated the outbreak could wipe $5bn (£3.9bn) off the global box office.
However, Cineworld said studios had insisted they remain committed to their film schedules for the rest of the year.
In a market update prompted by the epidemic, the company said: "Thus far, we have not observed any material impact on our movie theatre admissions due to COVID-19.
"Following an increase in admissions in the first two months of the year against the same period in the previous year, we continue to see good levels of admissions in all our territories, despite the reported spread of COVID-19."
But it cautioned that there can be "no certainty as to the future impact of COVID-19".
"Should conditions relating to COVID-19 continue or worsen, we have measures at our disposal to reduce the impact on our business including, but not limited to, capex (capital expenditure) postponement and cost reduction," it added.
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Cineworld also revealed a dip in earnings ahead of its full-year results due next week.
It reported a 4% drop in underlying earnings to $1.03bn (£794m). This came as it said 2019 revenues fell 7% to $4.4bn (£3.4bn).
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