Cineworld, World’s Second Largest Exhibition Business, Suspends Dividend

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Cineworld, the world’s second largest movie theater business, has decided to suspend payments of dividends to its stockholders. The freeze on payments applies to the 2019 fourth quarter dividend o…

, the world’s second largest movie theater business, has decided to suspend payments of dividends to its stockholders. The freeze on payments applies to the 2019 fourth quarter dividend of 4.25c per share and upcoming 2020 quarterly dividends.

In addition, the executive directors have “voluntarily agreed to defer payment of their full salaries and any bonuses to which they are entitled,” according to a company statement. The non-executive directors will defer their fees. The moves were taken in response to the evolving impact of the COVID-19 pandemic on its business, which has included the closure of the group’s entire estate of 787 movie theaters in 10 countries.

In its statement, the company added: “With very few exceptions, the good relationships we have built up over the years have been supportive and understanding of our efforts and, together with us, our industry partners look forward to the time when we shall again be able to open our doors and provide entertainment and pleasure to our customers.”

 

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Cineworld were one of the most successful global exhibitors before they decided they wanted to be the biggest buying Regal $3.6bn and Cineplex $2.1bn in markets that haven't had any real growth in more than a decade and then Coronavirus tipped them over the edge

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