# Cineworld Group suspend payment of the 2019 Q4 dividend

- Link: https://www.directorstalkinterviews.com/cineworld-group-suspend-payment-of-the-2019-q4-dividend/412811364
- Published: 2020-04-07T07:39:33+01:00
- Author: Amilia Stone

**Cineworld Group plc **(LON:CINE) today provided the following update on the evolving
impact of the COVID-19 pandemic on business. 

The Group’s entire estate of 787 cinemas in 10 countries has been closed as a result
of COVID-19, a situation impossible to imagine a few months ago.  This has obviously
been extremely challenging in many respects and our first priority has been the 
health and safety of our customers, employees and other stakeholders. 

Every effort is being made to mitigate the effect of the closures, to assist our
employees and to preserve cash.  These efforts include discussions with our landlords,
the film studios and major suppliers, as well as curtailing all currently unnecessary
capital expenditure.  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.

We welcome the emergency support programmes to protect jobs and business that have
been announced in our markets and will access them as appropriate.

We continue to monitor progress of the Group’s proposed acquisition of Cineplex,
Inc.

Given the importance of conserving cash wherever possible, the Board has decided
to suspend payment of the 2019 fourth quarter dividend of 4.25c per share and upcoming
2020 quarterly dividends.  The Board will keep this position under review.

Until there is greater clarity on the prevailing circumstances and given the impact
of COVID-19 on many of our employees, the executive Directors have voluntarily agreed
to defer payment of their full salaries and any bonuses to which they are entitled.
Similarly, during this period the non-executive Directors will defer their fees.

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 Cineworld Group shall again be able
to open our doors and provide entertainment and pleasure to our customers.

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