Share Search
Visit the Share Search
You are here:
Cineworld defers dividends and directors' pay
7th Apr 2020 07:02
(Sharecast News) - Cineworld has deferred dividends and directors' pay to conserve cash after closing all its cinemas during the Covid-19 crisis.
The international cinema chain suspended payment of the 2019 fourth quarter dividend of 4.25 cents a share and upcoming 2020 payouts.
After being forced to close all 787 cinemas in 10 countries, Cineworld's executive and non-executive directors agreed to defer their pay until there is greater clarity about the effects of the crisis.
The FTSE 250 company said it was in talks with landlords, film studios and major suppliers to find ways to reduce the impact of the shutdown and was freezing all non-essential capital spending. Cineworld is also in talks with its banks about its liquidity needs.
Cineworld, which owns Picturehouse in the UK and Regal in the US, joins a long list of companies suspending dividends to preserve cash amid a shutdown of non-essential businesses in major markets. The company said directors volunteered to defer their pay partly because of the impact on its more than 37,000 employees, many of whom are on zero-hours contracts or low wages.
"This is a painful but necessary process as before the onslaught of the Covid-19 virus, we were excited and confident about the group's future prospects," Cineworld said in an update.
"With very few exceptions, the good relationships we have built up over the years have been supportive and understanding of our efforts and, together with us, our industry partners look forward to the time when we shall again be able to open our doors and provide entertainment and pleasure to our customers."
The international cinema chain suspended payment of the 2019 fourth quarter dividend of 4.25 cents a share and upcoming 2020 payouts.
After being forced to close all 787 cinemas in 10 countries, Cineworld's executive and non-executive directors agreed to defer their pay until there is greater clarity about the effects of the crisis.
The FTSE 250 company said it was in talks with landlords, film studios and major suppliers to find ways to reduce the impact of the shutdown and was freezing all non-essential capital spending. Cineworld is also in talks with its banks about its liquidity needs.
Cineworld, which owns Picturehouse in the UK and Regal in the US, joins a long list of companies suspending dividends to preserve cash amid a shutdown of non-essential businesses in major markets. The company said directors volunteered to defer their pay partly because of the impact on its more than 37,000 employees, many of whom are on zero-hours contracts or low wages.
"This is a painful but necessary process as before the onslaught of the Covid-19 virus, we were excited and confident about the group's future prospects," Cineworld said in an update.
"With very few exceptions, the good relationships we have built up over the years have been supportive and understanding of our efforts and, together with us, our industry partners look forward to the time when we shall again be able to open our doors and provide entertainment and pleasure to our customers."