Cineworld Group PLC (LSE:CINE) said revenues continued to recover in the second half of the year as filmgoers returned to the cinema after Coronavirus (COVID-19) lockdowns, tempted by blockbusters such as ‘Spider-Man: No Way Home’, ‘No Time to Die’, ‘Dune’ and ‘Black Widow’.
In a trading statement covering the second half to end-December 2021, the cinema operator said box office and concession revenue grew 50% in July, 54% in August, 60% in September, 90% in October, 56% in November and 88% in December.
In the UK and Ireland, revenues rose 54% in July, 76% in August, 72% in September, 127% in October, 76% in November and 89% in December.
Cineworld said the November figure was impacted by the release of "Top Gun: Maverick" being moved to May 2022.
The strong growth in December was in large part due to the release of ‘Spider-Man: No Way Home’, which became the first film to gross more than US$1.5bn at the box office since the onset of the COVID-19 pandemic.
The group said it generated positive cash flow in the fourth quarter of 2021 on the back of cost cuts and the improvement in revenue.
"We are pleased to see continued strong demand amongst audiences for cinema experiences, supported by a slate of high-quality and high-performing movies. This demonstrates that fans are continuing to choose the unrivalled theatrical experience,” commented Cineworld CEO Mooky Greidinger.
The company said challenges relating to the COVID-19 pandemic remain, but highlighted the “strong” film slate for 2022, which includes ‘The Batman’, ‘Top Gun: Maverick’, ‘Jurassic World: Dominion’, ‘Black Panther: Wakanda Forever’ and ‘Avatar 2’.
Cineworld also said it had served a notice of appeal against the C$1.23bn fine imposed on the company by a Canadian court after it scrapped a US$2.1bn deal to buy Canadian rival Cineplex (TSX:CGX).