Market Report: Cineworld Shares Rise

Market Report: Cineworld’s share rises as the success of the new Spider-Man movie helps boost revenue to pre-pandemic levels

Cineworld’s share has risen as the success of the new Spider-Man movie has helped boost revenue to pre-pandemic levels.

The FTSE250 Group said its December revenues increased from 56% in November to 88%, the same figure in 2019, resulting in a 4% (1.56p) increase to 40.35p.

Cineworld said December’s “especially powerful” performance was enhanced by the release of Marvel’s blockbuster Spider-Man: Noway Home. This was the first movie to have box office revenues in excess of £ 1.1 billion since the start of the pandemic. ..

Bounce: Cineworld points out that December’s “especially powerful” performance was enhanced by the release of Marvel’s blockbuster Spider-Man.

The company’s US cinema revenues were strongest during the month, rising to 91% of pre-pandemic levels. The UK and Ireland screens were 89% of the numbers generated in December 2019.

As a result of recovery and cost savings, Cineworld’s cash flow turned positive in the fourth quarter of 2021.

“This shows that fans continue to choose an unparalleled theatrical experience,” said Group boss Cooky Greidinger. Analysts at broker Peel Hunt said the update was “encouraging,” as was the powerful slate of the 2022 release, including Batman, Top Gun: Maverick, Jurassic Park: Dominion, and Mission: Impossible 7.

However, brokers warned that shares would be affected by a £ 723 million court battle after the merger with Canada’s rival Cineplex was terminated in 2020.

Cineworld has appealed a ruling in favor of Cineplex issued by a Canadian court in December.

“We believe that the Cineworld stock price trajectory will be driven by the expectations of the proceedings, either until the proceedings reach a conclusion or negotiate a settlement,” said Peel Hunt.

The FTSE 100 fell 0.3% (20.9 points) to 7542.95 and the FTSE 250 fell 0.9% (215.13 points) to 22743.35.

Uncertainty about the threat of inflation not only continued to curb market sentiment, but also uncertainties about rising interest rates from various central banks. Oil companies were one of the tallest companies in the Best Equity Index as crude oil prices rose above $ 85 a barrel.

Shell rose 0.8% (13.8p) to 1822.6p and BP rose 1.3% (4.8p) to 388.7p, the highest level since March 2020.

Some bank stocks have also risen in the hope that higher interest rates will boost their income. Standard Chartered Bank rose 2.3% (11.8p) to 523.2p, while Lloyds rose 1.9% (1p) to 54.97p and HSBC rose 0.7% (3.6p) to 516.6p. I did.

B & M also fell 5.3% (31.8p) to 564.8p after the Billionaire brothers, who created a nationwide chain of discount stores, sold more than a quarter of the company’s stock. .. Investment companies associated with Simon and Bobby Arora said they sold about 4% of B & M’s stake and earned £ 234 million.

In 2004, the Arora brothers bought and transformed a local supermarket chain that was struggling at the time. This is the second time the brothers have sold a major stake in the business since the listing. In 2017, they exchanged a quarter of B & M’s stock on payday and put £ 215 million in their pockets.

It was a horror show for small health tech company Sensyne, whose stock price plummeted from 71.5% (54p) to 21.5p after warning that cash could run out within a few weeks. Founded by former government minister Sir Drayson, the company seeks to secure £ 6.4 million bailout loans from multiple investors. However, if the transaction failed, it was “unlikely” for Sensyne to continue trading after early February.


Market Report: Cineworld Shares Rise

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