Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

UK-based Cineworld to post sharp sales slump over closures

by German Press Agency - DPA

LONDON Mar 21, 2021 - 2:51 pm GMT+3
The entrance of one of the Cineworld buildings in Harlow, the U.K., Oct. 5, 2020. (Shutterstock Photo)
The entrance of one of the Cineworld buildings in Harlow, the U.K., Oct. 5, 2020. (Shutterstock Photo)
by German Press Agency - DPA Mar 21, 2021 2:51 pm

United Kingdom-based chain Cineworld is set to post a sharp plunge in sales for the past year after pandemic restrictions caused its global cinemas to be closed to customers.

However, investors in the troubled cinema chain have been increasingly optimistic since it warned that it was temporarily shutting the doors to its British and U.S. cinemas at the start of October. Its shares have more quadrupled since its October low when the company confirmed its 5,500 British staff were at risk due to its plan to hibernate sites.

Shareholders will be hopeful that the company can reveal an improving outlook in its latest update on March 25 as its major markets make progress with their vaccination programs.

Susannah Streeter, senior investment and markets analyst, at Hargreaves Lansdown, said, "Like an extra in Titanic, Cineworld was forced to grab at every lifeline it could to stay above water as the pandemic took hold.

"Vaccine roll-outs have lifted the curtain on a more positive picture, bringing hopes to moviegoers who will be more confident to snap up seats once cinemas reopen.

"A swift recovery will be crucial given the company is saddled with high levels of debt but there are fears that some movie fans may have got a little too comfortable watching releases from the comfort of their sofas, and might be slow to return to the big screen."

The speed of its potential British recovery will also remain uncertain for a number of months, with movie fans not set to return to its sites until May 17 at the earliest.

Revenues are expected to plunge from $4.37 billion to closer to $1 billion. Shareholders will be keen to see the depth of this sales slump, but will also be cautious over the rate of recovery amid continued uncertainty over the release slates from major studios.

They will want to see positive signs from management that it can stick to its previous 2021 revenue outlook of around $2.5 billion. The company was also one of the British stocks to benefit from the recent frenzy after Reddit-following retail investors backed GameStop to shake-up hedge fund activity.

However, Cineworld, which is one of the U.K.'s most hedged equity stocks, has seen its share price continue to stay resilient unlike some U.S. firms backed as part of the movement.

The update also comes two months after it persuaded enough shareholders to vote in favor of a huge new bonus scheme that could see its chief executive net 65 million pounds ($90 million) as part of a bonus pot worth up to 208 million pounds.

Investors holding just over 70% of shares voted for the new long-term incentive plan, despite Cineworld receiving taxpayer support through furlough and tapping up shareholders for cash to avoid collapse during the pandemic.

  • shortlink copied
  • Last Update: Mar 21, 2021 4:01 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    covid-19 restrictions cineworld virus measures revenues
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    A crude oil tanker sails in the Bosporus, on its way to the Mediterranean Sea, in Istanbul, Türkiye, Dec. 11, 2022. (Reuters Photo)

    Türkiye registers better-than-expected current account gap

    current-account-balance
     Eastern Anatolian Fault line triggered another fault segment called the Sürgü fault, Middle East Technical University (METU), Ankara, Feb. 9, 2023. (DHA Photo)

    Accumulated tension of hundreds of years moved Anatolia by 3m

    Harold-Tobin

    Istanbul's spectacular, historical grand bazaars and markets

    Travel

    Istanbul's consulate chronicles: Sudhi Choudhary, Consul General of India

    SUDHI-CHOUDHARY
    No Image
    Martian beauty: Valleys of red planet in Jordan's unearthly Wadi Rum
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021