Skip to content
Home / News |

Cineworld Shares Surge 17% Ahead of H1 Earnings

Cineworld theatre
Simon Mugo

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.

X testing X
WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
5.0
Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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

Tradingview chart of Cineworld share price 23092020a

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:

Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.