* October UK and Ireland revenue 127% of 2019 levels
* Overall revenue at 90% of pre-pandemic levels; U.S. at 80%
* CEO says studio partnerships strong as new releases
upcoming
(Recasts, adds analyst comment, detail and shares)
By Chris Peters and Pushkala Aripaka
Nov 15 (Reuters) - Cineworld sales touched 90% of
pre-COVID levels in October, the world's second-largest theatre
operator said on Monday, driving its shares up 14% while the
London-listed firm also said demand in the UK and Ireland was
greater than 2019.
It said revenue had grown steadily since reopening in April,
driven by big-budget movies including Marvel's "Black
Widow", "Shang-Chi and the Legend of the Ten Rings", Bond film
"No Time to Die", and book-to-screen science-fiction "Dune".
Cineworld, which operates the Regal cinema chains,
anticipates upcoming blockbusters, including the latest in "The
Matrix" franchise - "The Matrix Resurrections" - to attract
audiences and perform well if the pandemic does not deteriorate.
Cinema operators globally are relying on highly anticipated
glitzy blockbusters to help them get back on their feet after
being crushed by the pandemic and further poaching from
streaming services as people got locked in their homes.
Many movie releases were moved to streaming services after
the pandemic began, with giants Netflix and Disney and
Amazon's Prime Video seeking to get ahead of
long-lasting consumption shifts.
Straight-to-streaming has been a concern for cinema
operators and even movie stars https://www.reuters.com/business/media-telecom/disney-resolves-dispute-with-johansson-over-black-widow-movie-2021-10-01/#:~:text=LOS%20ANGELES%2C%20Sept%2030%20(Reuters,performer%20said%20jointly%20on%20Thursday
whose income is sometimes tied to box office performances in
distribution and acting contracts.
"Our partnerships with the studios are as strong as ever and
with the incredible movie slate to come, there are real grounds
for optimism in our industry," Cineworld Chief Executive Mooky
Greidinger said in a statement.
The company said its October revenue from the UK and Ireland
jumped to 127% of 2019 levels, while the United States touched
80%.
CHALLENGES AHEAD?
Cineworld's larger rival AMC last week comfortably
beat estimates for quarterly revenue. However, its boss warned
that there were coronavirus-related challenges ahead.
Jefferies analysts said that Cineworld is well-placed to
capitalize on people returning to cinemas, as its main markets
seem keen to avoid further lockdowns. The company gets 90% of
its revenue from vaccine-advanced nations U.S., UK and Israel.
Shares of the company, which gets the bulk of its revenue
from its Regal cinemas in the United States, were up 5% by 0805
GMT on the FTSE midcap index.
As a result of the improvement in revenue and tighter
control of costs, Cineworld said it generated positive cash flow
in October and described it as an important milestone in its
recovery.
Cineworld, which has been struggling with debt of about
$8.44 billion, did not give any update on a potential U.S.
listing it had mooted in August to bolster finances.
(Reporting by Chris Peters and Pushkala Aripaka in Bengaluru;
editing by Uttaresh.V and Nick Macfie)
