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Rs2002, top post Sir!
It is a shrewd move by Cineworld. They get to save on operating costs and align their opening to movie release dates.
This together with the various government support initiatives alongisde their lending capabilities, places them in a good position to weather closure for 30 days.
In a report from the Financial Times, the firm’s chief executive declared “we are not worried”. He cited the fact that most of the company’s costs were variable, noting “if we don’t sell movies, we don’t pay for the movies. If we don’t see Pepsi, we don’t pay for the Pepsi”.
If the CEO isn't worried. I'm not worried.
Akorn,
At the moment, Cineworld are not paying a lot of rent and not paying a lot of staff. The moment you open the doors that stops. No classics are gonna bring in enough people to make up the figures for 4 weeks before a bigger film opens. Plus the US needs to be clearer and they've enough funds to stay shut and not have it cause an issue. Makes perfect sense.
Cineworld are stupid. They should have opened up with a few new films and a few old ones. Maybe some classics to lure in punters. Then they wouldnt lose another 1 month revenue !
AMC UK arm Odeon still opening 4th July - Reuters about an hour ago. Looked out of interest and the film listings look very good to me. Not going obviously as that would be very disloyal to me - and the Odeon here sucks compared to the huge Cineworld complex just up the road (Meadowhall) where everybody goes. Our sites will be up and running soon enough.
By the time they re-open, the 2nd wave will have arrived !
I don't think its a strange reaction - the market generally like firm statements of planned action to rectify bad situations. We see it when redundancies are announced - SP's almost universally rise on the news. Counter intuitive, but explainable.
This share is a strange one alright!
The truth is nobody can call this share.
It tanked after a series of positive RNS's and is now climbing after having it's return date shifted back by 2 weeks. Nobody here really knows where it's going to go.
I've said it before and will say it again - god mid/long term play at these prices, but not without risk.
It wouldn't surprise me if Cineworld announce closures and job losses in the next few months. The deficit in income will cripple them for the foreseeable.
Smart move by Cineworld to defer UK and USA openings to 31 July and save money.
It's all about the alignment with new Hollywood movie releases for the US and UK.
Their Western Europe and Israel cinemas will carry on opening as planned because they play more local made movies.
Agreed Money when you look at it like that. More time to pick up this bargain basement share price
It just means an additional 3 weeks of holding. On the plus side, the US southern states will start to see declines in Covid by then. It makes sense to open them in line with big movie releases too, as anything less would just bring in mediocre revenues.
Although not good news, it’s only bad if you’re desperate to sell in the next few weeks.
Morning JaiBaba/Robert, Yes who knows. If USA can get itself in order in the next 4 weeks there might be good news ahead. Be interesting to see how the SP reacts, maybe it won't do too much.
Cinema opening are following off the heels of the increase of Covid-19 in the US and the resultant delay of studios to release their movies, namely Mulan and Tenet, both of which have had their release dates shifted 3 times.
There is no guarantee that 30th July will indeed see cinemas open. It is another hopeful date and depends entirely on how the US pandemic plays out until then and how movie studios react in turn.
Makes sense and is the logical thing to do. Carry on making use of the furlough scheme in the UK.
Paul I know what you mean. We’ve had good news building up for weeks now and a drop. This delay could be priced in and we might see a steady rise. Nothing surprises me in this market. We’ll know soon anyway. Good luck everyone
I'm not sure this is bad.... good to know what we're working towards. Aligning with movie release dates is sensible, and in the UK distancing regs might be relaxed by then too - opening an almost empty Cinema will increase cost, not profit.
To put today's announcement into perspective, On the 7th April Cineworld closed all their global sites and cancelled their dividend at which point the stock proceeded to drop to around 20p.
Two weeks ago today, Cineworld announced they would open their sites in their two main markets, the US and the UK on 10th July.
Today they have pushed that back another 3 weeks to 30th July, (1 whole month today), which is again subject to the Covid-19 situation and local government guidelines
It'll be more or less 4 months with $0 revenue, all the while having $3.5 billion worth of debt to service, excluding leases.
The US clocked in another rise of Covid-19 cases yesterday, having recorded a drop on Saturday and Sunday.
44,734 new cases and 346 deaths,
Not good
The latest RNS "Cinemas in the US and the UK to reopen Friday 31st July
In line with recent adjustments to the schedule of upcoming movie releases,
Cineworld announces today that its cinemas in the US and the UK will reopen
starting Friday 31 July. Cineworld has and will continue to reopen cinemas in
its other markets as previously stated on 16 June 2020, however upcoming
reopenings remain subject to final clarifications and confirmation in relation to
various government COVID-19 restrictions.
Cineworld will implement its previously announced health and safety
measures, which adhere to the latest public health guidelines and include
contactless payments, innovative sanitization procedures, new social distancing
protocols and seating capacity limits in line with local regulations.
Cineworld will continue to monitor the situation closely and follow any
changes to regulations or guidance from public health officials.
Commenting on the news, Mooky Greidinger, CEO of Cineworld, said:
"Movie fans around the world continue to be excited by the strong slate of
summer films ahead, including Tenet, Mulan, A Quiet Place Part II, Unhinged,
The Broken Hearts Gallery, Bill & Ted Face the Music, Greenland, and
Antebellum as well as a special re-release of Christopher Nolan's Inception on
IMAX. Cineworld looks forward to welcoming these moviegoers back to our
cinemas next month and believes that they will once again be immersed in the
timeless theatrical experience they know and love."