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Thank you for explaining that @HNS_77. If, however, there is a bidding war for Cineworld then surely that would be a good outcome for shareholders?
Please can someone explain to me how the sale of the group as a whole (excluding Cineworld) would result in a significant share dilution? Surely the point of any sale process is to maximise the valuation for the selling party i.e. Cineworld in this context and therefore shareholders or am I not understanding something here?
My personal view is that they are trying to gauge interest in their assets in order to buy time to get this company back on track. If all cinema's are in the same position as cinrworld financially then they will most likely struggle to find a buyer and will need to find a buyer from outside the theatre business altogether. My personal view is that if they fail to find a buyer then they can demonstrate to the judges that their plans are the best in town and they may get a stay of execution
https://www.ft.com/content/6e1a3b62-6a97-4871-90de-aff6970451b8
Times article posted today
A judge agreed on Friday to stay a claim for more than £1 million ($1.2 million) for outstanding rent from a Cineworld cinema site in London that was not paid during the coronavirus pandemic.
Thank you for explaining this for me. Then its clear to me that the business model is viable, just needs to buy some time to sort through these issues.
Thank you Hexam, I just don't hear about Vue and others struggling in the news headlines. This to me seems a direct consequence of Covid and nothing more, nothing less. Am I right ?
Many thanks ! So what I can't get my head around is if Cineworld is struggling as the largest provider, why the whole sector isn't suffering as well or am I missing something that is unique to Cineworld here ?
Does anyone know what market share Cineworld has in the UK i.e. are they the biggest chain in the UK ?
· Group revenue increased by 17% to £60.2 million (H1 2018: £51.3 million) continuing the strong growth trajectory from previous periods.
· Revenue from Ongoing Operations increased by 28% to £51.4 million (H1 2018: £40.0 million), which includes a 45% increase in Indian revenue to £40.9 million (H1 2018: £28.3 million).
· Adjusted EBITDA increased by 25% to £3.6 million (H1 2018: £2.9 million).
· EBITDA increased by 30% to £2.3 million (H1 2018: £1.8 million).
· Overall, currency movements across our international markets adversely impacted reported results. At constant currency:
· Group revenue increased 19%.
· Revenue from Ongoing Operations increased 30%.
· Adjusted EBITDA increased by 34%.
· EBITDA increased by 44%.
· Profit before tax reduced by 36% to £0.9 million (H1 2018: £1.3 million).
· Customer numbers have increased to 9.0 million (H1 2018: 6.7 million; 31 December 2018: 8.2 million).