CinemaOne Suffers $ 7 Million Loss for 2021

Business



CinemaOne cinemas at One Woodbrook Place, Port of Spain. -Archive photo / Ayanna kinsale

CinemaOne Ltd continues to be in the red, recording an estimated loss of $ 7 million for the year ending September 30, 2021. This figure was higher than in 2020, when it reported an estimated loss of $ 5 million. of dollars.

CinemaOne’s financial results reflect a sharp drop in revenue to $ 2.07 million from $ 6 million. Unlike 2020, where its gross margin was $ 3.78 million, this year the profit was only $ 960,788. That was scuttled by an operating loss of $ 6.46 million, up from $ 4.46 million in 2020 (after total spending of $ 7.4 million – 2021 and $ 8.24 million – 2020 .)

The pre-tax loss was $ 8 million this year, up from $ 5.2 million. A tax credit of $ 1.06 million brought his year-end loss to $ 6,997,483.

CinemaOne – listed on the PME level of the exchange – said its performance was largely due to the impact of three lockdowns due to the covid19 pandemic since March 2020.

He said that the closing of theaters “had a deleterious impact on the company’s revenues and profitability in fiscal year 2021 …

“The extended shutdown period not only exceeded that of fiscal 2020, but also included significant operational restrictions throughout the period in which the company was licensed to operate. These restrictions, which were not imposed for the first half of fiscal 2020, included, among other things, a 50% Capacity Limit, closing time at 10 p.m. and no alcohol consumption on the premises. During the two weeks leading up to April 2021, the company was also prohibited from allowing any type of consumption of food and drink on the premises of its cinema.

During the initial foreclosure, he implemented 50-100% temporary staff and salary reductions for all staff levels and negotiated a modified schedule and / or reduced contract payments with owners, major financial partners and other major suppliers.

This helped it maintain its liquidity and ensured its ability to reopen quickly. The company also continued its phased approach to decelerating capital spending related to its ongoing theater expansion project in the Gulf City Mall in southern Trinidad. Its main theaters are located at One Woodbrook Place, in Port of Spain.

Since the area reopened on Oct. 11 as a safe zone for vaccinated customers, the company said it was encouraged by attendance and spending per customer that was in line with pre-pandemic times.

However, he remained cautious about the prolonged impact of covid19 and expected “only a gradual and prolonged relaxation” of the restrictive measures in the interest of public security. “As such, the company’s financial management strategy will also include covid19 metrics such as active cash management and liquidity preservation, staggered and reduced working hours, and a primary focus on rapid return. positive EBITDA (earnings before interest, taxes, depreciation, and amortization) generation and profitability given the recent reopening of the company’s theaters. “

CinemaOne said that although the market cap at the current price of $ 4 per share fell only 9% to $ 25.6 million in 2021 and remained slightly above its reduced net book amount of $ 23 million. , it experienced a second year affected by covid19 characterized by a reduction in income of about -66 percent and a consecutive year of significant net losses.


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