Shares of Cineworld PLC (LON: CINE) have continued to move lower on a continuous basis by dropping a further 9% today. A fresh low of 41.21p marks the lowest level recorded since the beginning of April.
This is despite the planned opening of cinemas across the UK this week. Originally, Cineworld aimed at reopening its theaters on July 10, however, these plans were pushed back.
The cinema operator blamed a delay in new film releases. Two of the most anticipated blockbuster movies Cineworld said films – Disney’s Mulan and Christopher Nolan’s Tenet – had their screening postponed until August.
As the UK cinemas are preparing to reopen, the situation in the US is more difficult. The continued outbreak of COVID-19 across North America is keeping theaters shut.
“Until the total relaxation of social distancing rules, the pressure on finances will be quite significant, which suggests more job losses and cinema closures in the months ahead,” CMC Markets analyst Michael Hewson said.
JPMorgan analysts forecast that Cineworld burning through $50 million per month amid the pandemic.