Cineworld (LON:CINE) updated the market on Tuesday on its current position amid the evolving COVID-19 crisis.
Shares in the cinema chain soared above 40% during trading on Tuesday.
The company said that all 787 of its cinemas in 10 countries have been closed as a result of the virus outbreak.
Many governments have closed non-essential shops and outlets in an attempt to contain the spread of the illness.
Cineworld stressed the importance of conserving cash where possible and decided to suspend payment of its fourth quarter dividend, as well as upcoming 2020 quarterly dividends.
Additionally, the executive directors have voluntarily agreed to defer payment of their full salaries and any bonuses which they are entitled to, Cineworld added.
“Every effort is being made to mitigate the effect of the closures, to assist our employees and to preserve cash,” the cinema chain said in a statement.
“These efforts include discussions with our landlords, the film studios and major suppliers, as well as curtailing all currently unnecessary capital expenditure,” Cineworld continued.
“This is a painful but necessary process as before the onslaught of the COVID-19 virus, we were excited and confident about the Group’s future prospects. We are also discussing the Group’s ongoing liquidity requirements with our RCF banks.”
The COVID-19 outbreak continues to develop in the UK, and people are being encouraged to stay indoors in order to help contain the spread of the illness.
With most of the country coming to a standstill, these are difficult times for many businesses.
Shares in Cineworld Group plc (LON:CINE) were up on Tuesday, trading at +40.12% as of 10:57 BST.
