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Cineworld Share Price in Recovery Mode After 15% Drop

Shares of Cineworld Group PLC (LON: CINE) are trading over 5% higher today in an attempt to recover a portion of huge losses recorded yesterday.

The cinema chain operator yesterday posted a pre-tax loss of $1.6 billion in the first half ending June 30. Last year, the company reported a profit of £139.7 million.

Cineworld’s sales tumbled 66.9% to $712.4 million as the pandemic forced cinemas to close around the globe.

“There can be no certainty as to the future impact of Covid-19 on the group. If governments were to strengthen restrictions on social gathering, which may therefore oblige us to close our estate again or further push back movie releases, it would have a negative impact on our financial performance and likely require the need to raise additional liquidity,” said the cinema operator in the statement.

Cineworld stock price trades 5% higher today September 2020

Cineworld share price hit a fresh 6-week low yesterday at 39p. The stock price is now trading at around 43p as it attempts to get back above the 50p mark.

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