LESS than two years after becoming the first company to list on the Small and Medium Enterprise Market of the Trinidad and Tobago Stock Exchange, Cinema One Limited is facing its toughest challenge since inception due to the novel coronavirus pandemic which led to the company being unable to operate for 151 out of the 366 days in the financial year (FY).

The company, which had exclusive use of IMAX’s 3D patented screen technology and had one of the region’s only 4D theatres, saw its revenue drop by 67 per cent to TT$6 million ($125.4 million) as the Government attempted to control the spread of COVID-19 across the twin island republic. As a result, Cinema One lost the entire third quarter and was closed until November 8, which was almost half of the first quarter.

Although gross profit improved to 63 per cent at TT$3.8 million, administrative and marketing expenses resulted in an operating loss of TT$4.5 million. When factored in with finance costs and tax credits, Cinema One closed out the FY with a net loss of TT$4.9 million ($102.8 million), which was a sharp contrast to the TT$871,047 generated in the prior period.

Total assets climbed by 37 per cent to TT$82.1 million mainly due to a growth in non-current assets related to the construction of a new state-of-the-art movie auditorium at Gulf City Loan. This was financed by a TT$38.7-million loan from Guardian Group Trust Limited (GGTL) which pushed total liabilities up by 118 per cent to TT$52.6 million. The inclusion of International Financial Reporting Standards (IFRS) 16 resulted in a right of use asset and lease liability to the balance sheet.

Despite all of these events, the Jahra-owned company is confident that it will be able to bounce back once there are improvements in the environment and Government closure restrictions slow down. With no impairment to the company’s assets – TT$3.1 million in unrestricted cash ($64.8 million) and deferrals on Tranche A and B of its GGTL loan – Cinema One should be able to weather the COVID-19 storm.