Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
Home Finance Cineworld eyes Wall St money after rival AMC becomes meme stock
Finance

Cineworld eyes Wall St money after rival AMC becomes meme stock

by jcp August 12, 2021
August 12, 2021
gawdo

By Muvija M and Chris Peters

(Reuters) -Cineworld is considering a Wall Street listing for all or part of its business in an effort to bolster its finances which are under heavy pressure from the coronavirus pandemic.

A U.S. listing would give heavily indebted Cineworld access to the largest capital market in the world, where rival U.S. cinema group AMC this year became one of the so-called “meme stocks”, sending its shares skyrocketing.

Shares in Cineworld, which gets the bulk of its revenue from its Regal cinemas in the United States, jumped 8% by 0833 GMT on the FTSE midcap index.

“We believe this is quite an interesting consideration which could be supportive of valuation if we were to see similar support in Regal as was with AMC,” BofA analysts wrote.

The company, which had net debt of $8.44 billion as of the end of June, said cash burn was $271 million in the first six months of the year, while losses narrowed to $576.4 million from $1.64 billion last year thanks to tighter cost control.

Rival AMC, the world’s biggest cinema theatre group, has also reported a big quarterly loss, saying ticket sales were running at less than one-third of 2019 levels.

NEW RELEASES

People have flocked back to cinemas in the past few months to watch movies such as Marvel’s “Black Widow” and Paramount thriller “A Quiet Place 2”.

Cineworld boss Mooky Greidinger expressed confidence in a line-up of big releases ahead, including four new Marvel movies and Tom Cruise’s “Top Gun Maverick”, the new James Bond movie, “The Matrix 4” and science fiction film “Dune”.

All of Cineworld’s 787 sites were open as of June, with Greidinger saying ticket sales were now at more than 50% of pre-crisis levels, as the United States and the UK eased months of pandemic curbs after vaccination drives picked up pace.

But concerns over new variants of the virus and an accelerated shift by studios to release movies simultaneously on streaming platforms are still a cause for concern.

Cineworld said it was expecting the window for movie releases in theatres to stabilise to somewhere between 20 and 60 days by next year.

“One of the most significant things that we all learned from the short window is that it creates an opportunity for high-quality pirated copies which is going all over the world,” Greidinger said.

(Reporting by Muvija M and Chris Peters in Bengaluru; Editing by Subhranshu Sahu, Susan Fenton, Anil D’Silva and Jane Merriman)

www.gawdo.com
Share on FacebookShare on TwitterShare on Linkedin
0 FacebookTwitterPinterestEmail
previous post
Toshiba returns to Q1 profit on demand for automotive chips
next post
Canada PM Trudeau planning snap election, seeks approval for COVID response – sources

You may also like

UK’s number one funeral plan provider authorised by...

August 2, 2022

Grayce invests £4m+ in new collaboration hubs and...

August 1, 2022

Most Australian lawyers and accountants are concerned about...

July 29, 2022
Editorial & Advertiser disclosureEditorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gawdo.com
https://www.gawdo.com
  • About us
  • Advertising & Terms of Use
  • Contact Us
  • Privacy Policy

@2021 - All Right Reserved.


Back To Top
Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT