Specialist
Former senior executive at Regal Entertainment Group
Agenda
- Attendance expectations and customer behaviour trends in light of film slate delays and theatrical window shortenings
- Cineworld’s (LON: CINE) pricing and spend per person outlook, plus potential recession-proofing strategies
- Competitive landscape analysis – Cineworld vs AMC (NYSE: AMC) and Cinemark (NYSE: CNK)
- OPEX and CAPEX outlook post-coronavirus
Questions
1.
What is your outlook for US box office revenue in 2022?
2.
When do you expect the industry to recover from the pandemic-related post-production delay and the gaps you mentioned in content?
3.
What levels of attendance are you seeing at Cineworld’s US arm, Regal? Is this comparable to 2019 levels?
4.
Who is the key demographic driving attendance for Regal?
5.
How reliant is Regal on non-blockbuster content to return to pre-coronavirus profitability? Is the demand there for that type of picture?
6.
What average ticket pricing are we seeing at Regal?
7.
How much headroom is there for Regal to increase average ticket prices in the next 6-12 months?
8.
How does Regal’s average USD 12 ticket pricing compared to AMC’s strategy? Does this give either of them a competitive advantage?
9.
How do memberships come into play with the pricing structure? I don’t know what the current levels of revenue penetration might be for Cineworld.
10.
What levels of expenditure per person are you seeing for Cineworld in the space compared to pre-pandemic?
11.
What is your outlook for revenue per customer in 2022, given what we have discussed around attendance, ticket pricing and spend per person? Is anything particularly driving it?
12.
Cineworld announced a 20-60-day theatrical window depending on a film’s profile. What might the company mean by this, in terms of what criteria will be applied?
13.
What’s your outlook for landlord-tenant relationships in 2022? Are Cineworld’s rent deferrals due?
14.
You mentioned around 70% return to box office levels from 2019. What does this mean? What’s the margin impact on Cineworld from this?
15.
What is your view on a normalised CAPEX for Regal? Do you think the industry can maintain revenue with lower CAPEX?
16.
How do you see film rents trending? Is there a relation to a shorter theatrical window between film rents?
17.
What’s your view on the current and ongoing Cineplex litigation? What are the likely scenarios or timings around this?
