Take aways17 Mar 2022 11:09
No, not your favourite Indian, Chinese, Kebab place.
From today's release and webanair update with further confirmation of what we all knew already.
COVID - now HIGHLY likely to be of little to zero negative impact to business.
Viewing habits - those that enjoy movies still enjoy movies and always will. The positive of COVID is that there is good potential for these people to go even more AND for more people to go (reference the company survey results increase in all reasons to go to cinema over previous years).
Measures taken by company will greatly help going forward and more than offset increased debt and cost of it. For example - closed poor performing sites, opened new good performing sites, refurbished key location sites that will significantly improve profitability for group, increased food/beverage and gaming options combined with people going larger all high profit elements of business.
Month by month revenues if it shows clearly if we have the content then people are going at levels that will see us profit and be able to reduce and improve financing/debts.
We have ahead of us a near certain list of Movies from now through next couple years that will support business achieving their 85% + levels.
October, December, Feb first half shows this clearly.
We have similar maybe in a couple cases even better product pretty much every month now.
Tough and costly decisions during COVID times have and will pay handsomely going forward i.e. the refurbishments and openings in key locations.
Market share due to the above has returned and good expectations to increase market share in 2022 and beyond (this sort of thing is what derampers omitt from their doom when talking debt or profit levels, similar with the spend per person and higher mix of premium viewings tickets costs)
Expect and working on further growth in membership schemes.
Studios and Cinema are a strong partnership and in both interest to maximise profits. They have good relations and have learnt from last 2 years.
Rent defferals obviously have a cashflow cost over next few years, but deals done mean not a significant effect on cashflows.
Last but certainly not least - Cineplex - Full faith in Canadian judicial system - strong confidence in appeal and system - 3 judges - added another legal team that have expertise in appeals - unsecured debt - full appeal from Cineworld expect to be in end next month.
Cineplex position will likely continue to drag share price so it will be excellent for this to start to unravel hopefully very positively.
I will personally also be keeping close eye on Box office mojo site and tracking each of our months ahead .
Hopeful and expecting good quarters from Q2 onwards.
Anyone missing foolish derampers head over and look back over last week or so on A D V F N site, bricksomethingorother was hilarious with his continued 10p then zero and company shareholders wipeout premonition for today. Ha ha