Cineworld CEO Says ‘Tenet’ Debut Bodes Well for U.S. Release
(Bloomberg) -- The head of Cineworld Group Plc is counting on a busy weekend at its U.S. movie theaters after Christopher Nolan blockbuster ‘Tenet’ hauled in $53.6 million on its overseas debut.
The world’s second-largest cinema operator has lost almost three quarters of its market value this year and was forced to renegotiate lending covenants with banks after revenue was completely choked off by lockdowns.
Nolan’s time-bending thriller is one of the biggest releases since theaters in Europe and the U.S. began to reopen. Opening sales will gauge if the pandemic has caused a permanent shift in viewing habits from the big screen to home streaming.
The “amazing result” for ‘Tenet’ bodes well for the film’s U.S. debut this weekend, Chief Executive Officer Mooky Greidinger told Bloomberg TV. He said the company will be “back in full force” by next summer, by when a coronavirus vaccine will have been found.
“But we are ready if this does not happen,” he added.
Cineworld shares rose last month after a company chaired by Chinese businessman Liu Zaiwang acquired a 4.49% stake, fueling speculation of a potential deal to take Cineworld private.
“We have no plans from our side, or from the family’s side, to take the company private,” said Greidinger, referring to his own family, which owns the biggest stake in Cineworld.
He said it’s well-placed to deal with a second wave of the virus and there are other possible sources of funding if the company were forced to close cinemas again.
The other big threat comes from studios bypassing movie theaters and sending their blockbusters straight to streaming platforms, or shortening the period when a film can only be seen on the big screen. Walt Disney Co. plans to take its newest release, ‘Mulan,’ direct to its own streaming service.
Greidinger said he doesn’t see other movies following suit, and the likes of ‘Tenet,’ ‘Mulan’ and the ‘James Bond’ franchise were designed for theatrical release.
“I’m sure Mulan will do well in the territories that are offering it theatrically, including China, which is the natural home of Mulan,” he said.
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