Shares of Cineworld Group plc (LON: CINE) today surged 17% ahead of the company’s H1 2020 earning results set for release tomorrow.
The cinema operator is expected to report a huge loss as compared to last year due to the coronavirus lockdown measures, which saw theatres closed for several months in order to combat the spread of the virus.
However, investors expect the company to report strong figures for the second quarter, which saw it reopen many of its theatres across the globe attracting a huge number of customers.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Cineworld’s CEO Mooky Greidinger said that many of its shows have been sold out since reopening its theatres as moviegoers trooped back, which should be good for the company’s bottom line.
The fact that cinemas have to implement social distancing measures means that even at full capacity they can only accommodate 60% of their previous capacity, hence, they are not generating as much revenue as they did in the past.
The lack of major blockbuster movie premiers will also have a negative impact on Cineworld’s earnings.
The cinema chain is expected to report a loss, but if today’s rally is anything to go by, it appears investors are bullish regarding tomorrow’s earnings report.
Cineworld share price
Cineworld shares today surged 17% to trade at 51.60p having rallied from Tuesday’s closing price of 44.09p.
People who read this also read:
