Cineworld, a prestigious cinema chain, has been given an improved credit rating by S&P Global Ratings, as their analysts believe that the recovery of the Hollywood box office will support ongoing debt-reduction initiatives.
The credit rating agency has upgraded Regal Cineworld from a “B-” to a “B,” maintaining a positive outlook for the company’s future growth following the pandemic and bankruptcy. This movie theater chain operator in the U.S., Regal Cinemas, is anticipated to further strengthen its financial position as cinema ticket sales increase and cost reduction efforts continue.
In this version, I’ve aimed to make the text more conversational while still maintaining the original meaning.
According to S&P analysts, who published a report on May 28th, they believe that factors such as the recovery of box office sales, reasonable ticket prices, and careful management of expenses will contribute to Regal Cineworld’s adjusted EBITDA margin reaching around 30%. This, in turn, should improve their free cash flow to debt ratio (FOCF), making it balanced in 2025 and consistently positive from 2026.
The upgraded debt rating comes after the success of Disney’s “Lilo & Stitch” and Tom Cruise’s most recent “Mission: Impossible” film, which boosted Paramount and Skydance to achieve the largest Memorial Day weekend box office earnings ever recorded.
The S&P Global report predicts that the impressive lineup of movies set to be released in 2025-2026 will likely boost the rebound of worldwide cinema attendance, as well as Regal Cineworld’s ticket sales and earnings before interest, taxes, depreciation, and amortization (EBITDA),” it stated regarding the company’s projected performance for the remainder of this year and into 2026.
After Regal Cineworld reduced its debt following bankruptcy, it seems to have navigated the pandemic-induced crisis more successfully than other cinema chains, leaving it as the second largest chain behind AMC Theatres. This success is further emphasized by the S&P Global upgrade, a move that Regal Cineworld’s Chief Financial Officer, Thomas Song, highlighted as recognition of their ongoing efforts to strengthen their financial position and enhance the movie-going experience for customers.
In my own words as a fan, I’d say: “I’m thrilled to share that this move further showcases our dedication towards reducing our interest expenses and fortifying a robust, resilient financial structure for the future. It’s an honor to receive such recognition, and we are determined to continue generating substantial value for our supporters.” – Song, in a statement.
Although Regal Cineworld and other global cinema sectors have managed to recover to some extent following the pandemic, they are still experiencing a decline in box office revenue compared to before the pandemic. Regal Cineworld manages various brands such as Regal Cinemas, Cineworld, Picturehouse, Planet, and Cinema City, with theaters located not only in the U.S., but also in the UK and throughout Europe.
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2025-05-28 18:54