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Movie theater chain Cineworld (OTCPK:CNNWQ) (OTCPK:CNWGQ), which recently filed Chapter 11 bankruptcy, said it expects the global box office to take another two years before it returns to pre-pandemic levels.
Cineworld, which owns and operates Regal Cinemas, the number 2 movie theater chain in the U.S., said on Friday that admissions are “expected to remain below pre-pandemic levels” from now until 2024, according to the Financial Times.
The box office recovered somewhat during the summer, due in large part to the success of Top Gun: Maverick (PARAA), Jurassic World: Dominion (CMCSA), Thor: Love and Thunder (DIS) and Minions: The Rise of Gru (CMCSA), but the past couple of months have been slow, Seeking Alpha has previously reported.
Cineworld (OTCPK:CNNWQ) (OTCPK:CNWGQ) Chief Executive Mooky Greidinger has publicly acknowledged there are "ongoing material uncertainties" and that the company is "cautious" due to ongoing economic uncertainty, due in part to rising inflation.
However, the firm is betting on a recovery in box office in short order, as movies such as Black Adam (WBD), Black Panther: Wakanda Forever (DIS) and Avatar: The Way of Water (DIS) are expected to perform well at the box office.
Earlier this week, it was reported that Canadian movie theater and family entertainment company Cineplex (OTCPK:CPXGF) (TSX:CGX:CA) had spoken to lenders of bankrupt rival Cineworld (OTCPK:CNNWQ) (OTCPK:CNWGQ) about acquiring its Regal Entertainment franchise.