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About Edwards Theatres Circuit, Inc.

Cineworld Group likes living in the reel world. The international cinema chain operates over 785 theaters and more than 9,500 screens in some ten countries in in the Middle East, North America, and Europe. Brands include Cineworld, Regal, Cinema City, Picture House, and Yes Planet. In mid-2020 it announced plans to expand into Canada with the acquisition of Cineplex for $1.65 billion, creating North America's largest cinema operator. The company was founded in 1995 by Stephen Wiener and began trading on the London Stock Exchange in 2007. About three-quarter of the total sales comes from the US.

Operations

Cineworld offers several formats to watch movies, including regular screens, 3D, IMAX, and Premium Large Format as well as 4DX, ScreenX, and a VIP offering. At the end of 2019 Cineworld had a total of 135 IMAX screens, around 85 4DX screens, and some 120 Premium Large Format screens.

The company derived its revenue by its products and services: Box office, nearly 60%; Retail, around 30%; and the remaining revenues comes from other.

Geographic Reach

Cineworld is based in Brentford, UK (west London) and currently operates in 10 countries.

The company has two reporting operating segments: the US, accounts for about three-quarter of the total sales; and the UK & Ireland (15%). It also reports a third segment, the ROW (more than 10%), which includes the cinema chain brands Cinema City in Central and Eastern Europe territories and Yes Planet and Rav-Chen in Israel. The ROW reporting segment include Poland, Romania, Hungary, Czech Republic, Bulgaria, Slovakia and Israel. The results for the US include the three cinema chain brands; Regal, United Artists and Edwards theatres. UK&Ireland includes two cinema chain brands, Cineworld and Picturehouse, which operate in the same territory with the same external regulatory environment and ultimately provide the same services and products.

Sales and Marketing

Cineworld operates a number of marketing programs designed to encourage repeat visits to its cinemas. In the UK and Poland it offers an Unlimited membership service for a fixed monthly (or annual) subscription, enabling customers to watch as many films as they wish. In the US, members of the Regal Crown Club loyalty program earn credits for each dollar spent at its cinemas, and can redeem them for movie tickets, concession items, and movie memorabilia.

Financial Performance

Cineworld's total revenue in 2019 was $4.4 billion, an increase of 6% from $4.1 billion in 2018. Sales from Cineworld's Box office, Retail, and other income all increased for the year.

Profit in 2019 was $180.3 million, a decrease of $104 million compared with the prior year's $284.3 million. The decrease is the net result of including an additional two months results from Regal in the year compared to 2019, the lower admissions year on year, the impact of IFRS 16 which has had a negative impact on the results for the year and the one-off operational and non-recurring non-trade items.

Cash and cash flows at the end of the year were $140.6 million, a $176.1 million decline from the year prior. Operating activities generated $1.3 billion in 2019, and investing activities contributed another $141 million from sale and leaseback. Financing activities used $1.6 billion, mainly for repayment of bank loans, dividends paid, and payment of lease liabilities.

Strategy

Cineworld's strategy is to: provide the best cinema experience; be technological leaders in the industry; expand and enhance its estate; and drive value for shareholders.

Cineworld aims to provide the best cinema experience to give its customers a choice of how to watch a movie, with a variety of retail offerings, all underpinned by the best customer service.

Cineworld looks to expand and enhance its estate to provide consistent, high quality, modern cinemas. When selecting new sites for development or sites for refurbishment Cineworld considers the location, accessibility, competition, and other local economic factors. It also has a selective site closure program when the lease terms have expired and it is not commercially beneficial or feasible to review these leases.

Cineworld also aims to be technological leaders in the industry to offer the latest audio and visual technology. Cineworld wants to be at the forefront of providing the latest technology to its customers. It continues to strengthen and deepen its partnership and relationships with its technology partners.

Lastly, Cineworld will drive value for shareholders by delivering its growth plans in an efficient and effective way to be able to reward its shareholders, it remains focused on driving revenues, increasing earnings and prudently managing its cash position.

Company Background

Cineworld Group was founded in 1995 by then CEO Stephen Wiener. The Group was listed on the London Stock Exchange in 2007. The company has spent the last decade expanding through acquisitions, including Picturehouse in 2012, Cinema City International in 2014, and Regal Entertainment Group in 2018.

Edwards Theatres Circuit, Inc.

300 Newport Center Dr
Newport Beach, CA 92660-7529
Phone: 1 (949) 640-4600

Firm Stats

Employer Type: Privately Owned
Employees (This Location): 118
Employees (All Locations): 3,700

Major Office Locations

Newport Beach, CA