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They knew about streaming releases and 31 day theatrical realeses.
They also knew the number of movies being released for this year when they made their assessment.

There are number of articles on streaming and many have said here that 31 day theatrical release is good enough for CINE to make money. Even pre covid days, cinemas made most money in the first 31 days. Even with Disney streaming, global theater revenue is multiple times higher than streaming revenue.

Some like 77 and others are just talking rubbish about streaming.

MoneyP1t pointed the daily avg that cinemas are making are now 61% of 2019 levels and it is improving day with strong line up of films coming up in second half. So if you do same 61% of 2019 levels for share price then clearly we should be at 61% of £1.90 so that should £1.14 which is Barclays target price of 115p so you can see how accurate is Barclays target price!!!

So current price is at a bargain basement and we will be heading to 115p in the second half.

https://www.worldometers.info/coronavirus/country/us/

US cases seem to be going down -

August 3 (GMT)
6,945 new cases and 65 new deaths in the United States

August 2
56,369 new cases and 213 new deaths in the United States

August 1
56,031 new cases and 165 new deaths in the United States

July 31
89,599 new cases and 369 new deaths in the United States

July 30
101,608 new cases and 435 new deaths in the United States

July 29
98,035 new cases and 413 new deaths in the United States

July 28
86,463 new cases and 493 new deaths in the United States

LedZepper, As you seem to have some sort of accountancy training so please review the RNS and let us know what you find.

I'm not an accountant at all. I looked at RNS and I see that £256m payment is part of a liability to be paid for Tapla acquisition. I'm now not clear if £467m net debt is on top of Tapla payment but going by their statment that I copied in my previous post, they seem to infer that £467m is before the Tapla payment so after Tapla payment net debt left as of August would be £211m!

Either way it is good that they are paying off such big amount this month.

Also I just researched on Talpa and I see that ITV bought Talpa media for £355M in 2015 and they are paying earnout payment of £256m for that acquisition. ITV said this is the final payment for Talpa.

I just learnt what "earnout" payment is -
"An earnout is a contractual provision stating that the seller of a business is to obtain future compensation if the business achieves certain financial goals. ... The earnout eliminates uncertainty for the buyer, as they only pay a portion of the sale price upfront and the remainder based on future performance."

Now from RNS I see that there are more Tapla like payments coming as part of "earnout" payments to the previous owners from which acquisitions were made by ITV in the past! They currently estimate £331m to be paid between 2021-2026. I wonder if this is not what market didn't like after seeing the RNS. But I also see that this £331m includes Tapla payment of £256m so if this is deduced then the future payments as part of earnout payments for acquisitions is £331m - £256m = £75m, which is nothing. Someone please correct me if my understanding is not correct. If anyone is interested to see where this is mentioned in the RNS then it is listed in 2 tables above the FCF calculation.

Also FCF dropped from £345m(June 30, 2020) to £71m now but this they said is due to not much production last year due to pandemic as a result there was cash left so it is not a real drop in FCF.

Overall, net debt on June 30, 2020 was £783m and now it is £467m so ITV managed to reduce debt by awesome £316m and ITV can run the business like this for several years to come and outlook is going to improve and can exceed 2019 levels when SP was at 155p so ITV price should head back to 155p.

Like Nige said with less debt and cash in hand, ITV is dead cheap at current price for a takeover.

Clearly heading to $800.

Twice it bounced from $600 and I don't think we will see $600 again anytime. All the false and bad news on Tesla last 6 months since Feb this year could not keep Tesla down.

I think in next 5yrs Tesla will hit $1500 at some point.

I missed this last year when it went down to $450 and I was under the same impression last year that it would not go high this much and that costed me a lot and I still cannot sleep thinking about it. I sold few months back at $700 having bought at $1000 last year. But really regretted for selling it at $700. Luckily bought again when it dropped from $700 to $550. I will keep adding IF this goes down to $600 again but I do not it will...

looking at RR and IAG, there is a lot of FOMO on these stocks and at the same time fear of pull backs.

We just need that news of US welcoming double vaccinated citizens and that will rocket the price for sure.

Currently US is having big surge of Delta cases but Fauci confirmed that there will not be lockdowns so once they reach peak, pretty sure they will open up borders.

Clearly world can see how UK is doing well with vaccinations and with almost full opening, cases are falling down week after week and SAGE prediction of another wave is proving to be totally wrong every day.

Thanks 5eights.

Just another thing that I noted in the results RNS and I forgot to post it here is about this statement on Financials -

" Reported net debt of £467 million (31 December 2020: £545 million) is before the final earnout payment for Talpa of €298 million (c. £256 million) which will be paid in August 2021"

so they are saying that £467m debt is "before" payment to Talpa and they are paying of £256m to Talpa in August so it means that the net debt after august and after making payment to Talpa is £467 - £256 = £211m! and that is peanuts!

With total liquidity of £1,482 million, comprising total cash of £704 million (includes restricted cash of £50 million) and committed undrawn facilities of £778 million, they can still pay dividend sooner than in 2022 even after paying £256m to Talpa. Something is brewing behind the scenes....

Definitely ITV is dead cheap now for a takeover. With Debt so low and with such high cash, am pretty sure, there will be a takeover attempt this year.

Just today another British company Meggit got a cash offer by a US company! There will be one for ITV too.

Airlines see '300% increase' in bookings to the US, says industry boss

The updated travel restrictions, which came into effect for fully vaccinated arrivals from the US and EU today, have led to a "300% increase" in bookings to the US, Airlines UK chief executive Tim Alderslade said.

He told Times Radio: "I think the announcement this morning is very welcome - there will be an uptick in bookings.

Went to see JC, except for the front 3 rows all the other back rows were full. Almost all families are with kids and loaded up with all kind of snacks. Tills were ringing loud. After the movie went to a restaurant and that was busy too. Clearly life is back to normal and back to normal for Cine too!

I think outlook has improved for ITV than it was in 2019. Britbox subscribers have increased year on year and advertising revenues getting back to 2019 levels or even higher for some months.

Only thing that needs to get back to 2019 levels is the share price. We were at 155p and that is where we need to get back to.

World cup football is coming and that will help increase viewing numbers and the ad revenue. All of ENG matches are on ITV.

I remember something similar with Facebook back in 2018. They gave lower guidance for the 2 quarters ahead and price went down to 126p but later the 2 quarters were not bad and price came back to what it was. So it was an overreaction.

ITV is safe investment and looks like lack of dividend payments until next year is causing big funds to pull out but other funds will use the cheap price and will load up soon.

I'm confident it will be back to 125p atleast soon.

Typical of Bonkers. When he doesn't have an answer to my questions, he will restort to abuse.

I'm invested so I will hope for a good rise to £1.50. What is your problem with that?
I ****ing don't care whether you believe it or not.

Everyone has seen since how many months Bonkers has been sucking FI's balls. As you enjoy sucking his balls so continue to do so.

Bonkers says drop today is due to RNS but I wonder what the explanation is for SP being steady until 3hrs of trading in the morning! Market was sleeping until 3hrs and ignored RNS and reacted from 10.30 onwards?

Based on Bonker's bonkers and not so fun FI's comments, Mooky should not secure additional liquidity unless it is needed?
Are these 2 guys running the world's second largest cinema chain? If Mooky is to run the business like these 2 guys suggest, I think Cineworld would have been closed forever last year itself.

When you point these guys mistakes, they will apologize or they will say that their comment was appropriate at that time of the situation but they expect Mooky not to get more funds just because he said CINE has enough liquidity in March? Just becasuse he borrowed 200mn to run world's second largest cinema chain doesn't mean that everything is in trouble like how Bonkers and FI wants everyone want to believe.

For example, I will borrow loan from a bank to buy a car even though I have money in my bank and I did it that way few years back. My friend bought a laptop with a credit card but he did not pay it from his pocket. It doesn't mean that he is not having money. So there is nothing wrong and no trouble when Mooky is borrowing while running the second largest cinema chain. Always prepare for the worst and have contingency plan, which exactly is what today's RNS is about but the idiots want you to believe that there is a trouble.

The fact that it is an incremental loan means that it is secured for contingency otherwise why not get full loan amount outright instead of incremental? Ah, now our trolls will then say that Mooky could only get incremental loan because lenders did not agree to give full 200mn outright! They will still say they are invested. Ofcourse Bonkers is invested as he keeps saying he is not selling shares in his every other post but anyone invested will not be so dumb to keep talking bad about their investment. Oh right, he is taking a balance approach! utter bonkers it is. He doesn't want to believe that 200m incremental loan could be a contingency plan but wants to believe what FI has said? Ah our trolls immediately want to pounce saying Mooky did not use the word contingency! Well if you are invested, you would think it as a contingency plan and if you are not then you would only see negatives, simples.

FunInvestor never looks worried when SP is going down. Usually the typical reaction from any investor is bit of nervousness when SP is going down but what you see from FI comments when SP is going down is more attack on the down days to do maximum damage and he will reply anyone giving positive spin to a story about CINE but he won't bother to respond on negative spin but he says he is taking balanced approach.

no negative spin by the media either about the RNS other than the negative spin the trolls here...
So what caused the drop after 10.30am?

Definitely the drop now to 5% is not due to RNS as market could have reacted with 5% drop in first 2-3hrs of trading!

Since the RNS released at 7am and until 10.30 around, it was at 66p so down by hardly 1% and now nearly 5% drop?
So the new liquidity that was secured was well received in the morning and until 10.30am it was OK so what changed after that?

Yes, it is better you keep quiet and sell up(doubt you are invested) as you are worried about finances.

FI, it is best to sell up(although I doubt you are still invested) than worry about CINE finances. How cleverly you have spinned the good news about securing liquidity to negative. SP started to drop after your commments. Could be a wider market thing and nothing related to your comment but others should make a note of FI comments.

First, if you read the first few lines in the RNS, it said no material impact on the cost for debt. Moreover Mooky said 200m of incremental loans, which means they are not desparate to take all of 200m at once now and they are not getting all at once either as it is incremental and Mooky will use it at will and when needed and that also means that they are making money with tills ringing loud every day and every month and that proves that you "falsely" claimed previously about monthly cash burn is alarming and it is NOT.

Ofcourse one may ask why secure additioanl liquidity when tills are ringing and making money. Well, when you are running world's second largest cinema chain, you will need money considering the pandemic and moreover it is an incremental 200m loan, which Mooky can use when needed(that is why no material impact on the cost for debt)and considering we are still in pandemic, it is good to secure money now when trading conditions are good and be prepared for any uncertainty with the future.

Maturity of the new 200m is not until 2024 so that means lenders are happy to wait till another 3 yrs from now! Read that again - lenders are happy to wait till 3 yrs from now! It shows the confidence on Mooky and on cinemas as they clearly are seeing pent up demand for cinemas. Even other cinema chains have said that they seeing pent up demand. We also have seen how many here have posted saying that cinemas are full and very busy at the peak times.

Mooky says that since cinemas started reopening in April 2021, trading has continued to improve and the Group is now "well-positioned"(wouldn't use that word if there is a worry about finance) to benefit from pent-up customer demand and the exceptionally strong film(Bond and many more) slate through the second half of 2021.

We have the demand and all that we need is more movies every month and second half has exceptionally strong films.

" Essentially it gives us a great comfort blanket to use the debt if we need it (not unlike a overdraft you don’t need to repay until 2024) to let us cruise into Q3 and Q4 when the tills really start ringing and the money rolls in.

Lenders are not stupid, they have supported Cineworld through its darkest hour as they know when the tide turns we are a very successful cash business which will go from strength to strength.

Rearranging of covenant agreements is also a huge plus and puts us in strong position moving forward to
start bringing in serious cash with the huge blockbusters waiting in an unprecedented queue.

Shorters have banked on this NOT happening and results showing we are close to running out of money and breaching our debt agreements, this now WONT happen and only way the price is going is up and the shorts are going to need to get out before the quickly start to drown - it’s a case of who blinks first and they start to close before they all need to jump for the exit for fear of being left behind with price rising"

I28 excellent post!

Fantastic update. Did not expect RNS so close to the results.

"The lenders and indeed Cine are sending out a statement that they believe in the business and are happy to support it through to a return to normality" well said Crumpets.

I said many times Mooky will take care of the debt. It is better to leave monthly cash burn to Mooky than trying to do a guesswork and creating panic. He secured more liquidity without dilution. Yet we will get reminded about debt by the expert resident trolls here.

It is clear Mooky is aiming for his bonus when SP reaches £1.90!

By the time Bond releases, we could be at £1.50!

Remember that news.
Just 3% down so far. Bad news priced in may be.

Fully vaccinated can travel without quarantine. Should be good for IAG.
US might open up travel for UK soon.

I'm holding.

Well Jed, previous narrative for overvalued was Tesla not making profits and now narrative for overvaluation is something else. With the previous narrative, shorts lost big and they will lose again.

Bury opened 320m short in March and price was 700-750. It came down to 700s in Feb so I assume that his short is in that region.

4 months on, price is near 700 :-)
So he didn't make any money since 4 months :-)

I think Bury will help move SP to $1000!