Cineworld hails ‘strong’ opening weekend thanks to Peter Rabbit 2

Embattled cinema operator Cineworld said it welcomed more visitors than expected at the weekend as it reopened its cinemas in the UK after being shut for months on end due to lockdown.

The group, which is struggling under billions of debt, said the success of Sony’s animation Peter Rabbit 2: The Runaway helped it record a ‘strong opening weekend’, although it did not give exact figures.

And it expects next weekend’s box office to be ‘strong’ too, thanks to the release of Walt Disney’s Cruella starring Emma Stone, and thriller A Quiet Place 2. 

It comes as Cineworld, which has 127 cinemas in the UK and 536 in the US, had a rough time since the pandemic started last year. 

It has now reopened all its cinemas in England, Scotland and Wales after the lifting of restrictions on May 19, except for Glasgow, where they are still closed as the city remains under level three Covid restrictions for the time being. 

Meanwhile, in the US, where it began to welcome back customers gradually at the start of April, most cinemas, or 502, have now reopened, after an extra 167 reopened in recent weeks.

Cineworld, which operates Picturehouse cinemas in the UK, also has theatres in Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel. 

In these countries, it will be reopening ‘at the end of the coming week’, with most of its cinemas in these locations expected to be open by the end of the month, it said.

‘We are thrilled to have our cinemas back in business in the US and UK and to welcome movie fans back to the big screen for an exciting and full slate of films,’ said chief executive Mooky Greidinger.

And added: ‘With the releases next week of Cruella, and A Quiet Place 2, we expect next weekend’s results to be strong. 

‘When combined with improving consumer confidence and the success of the vaccination rollout, we expect a good recovery in attendance over the coming months, noting the record breaking success of F9 in the Asian market.’

The company also said it has received a $203million tax refund. 

Shares in FTSE 250 listed Cineworld rose 2.2 per cent to 88.76p in early trading on Monday. 

They have risen by around 60 per cent over the past six months amid hopes that it would be able to reopen its cinemas across the world.

In March, Cineworld revealed it had sunk to its first-ever loss of £2.2billion as admissions tumbled amid mass closures triggered by lockdowns.       

Last month, shareholders voted in favour to suspend its borrowing limits and allow it to increase its £6billion debt pile by an extra £155million. 

Cineworld, one of the most shorted stocks listed on the London Stock Exchange, said it needed the money for ‘further liquidity’ reasons if there is more disruption caused by Covid. 

It is now hoping to cash in on the release of big blockbusters by Hollywood studios over the summer. 

Russ Mould, investment director at AJ Bell, said it needs to be seen if people will want to spend summer months at the cinema. 

‘The weather was atrocious in many parts of the UK and so going to the cinema would have been a welcome relief, particularly to keep children entertained. But what happens if we finally get some good weather this weekend and from then on?,’ he asks.

‘The nation might prefer to enjoy the great outdoors and associated leisure activities, instead of sitting in a dark room with strangers and worrying about whether the ventilation system is up to scratch.’