LSE:CINE (Cineworld Group plc)
About CINE
Cineworld PLC is a cinema operator operating globally with its headquarters in the United Kingdom. As of 2018, the company became the second largest cinema chain in the world with 751 theatres across 10 countries on 9,189 screens. It operates under several brands including, Cineworld, Picturehouse, Cinema City, Yes Planet, and Regal Cinemas.
The group generates revenue through three primary channels. Income from Box Office ticket sales generate around 50% of the top line. The rest comes from Retail sales of concessionary items such as popcorn and drinks, pre-show advertisements, and online booking fees.
Management intended to continuing expanding its cinema empire in late 2019 with the acquisition of Cineplex in Canada. However, following the pandemic, Cineworld attempted to walk away from the deal after it was signed, leading a C$1.24bn lawsuit that ended in favour of Cineplex in December 2021. The company is appealing the ruling.
Frequently Asked Questions
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The CINE share price was 170p when the company was floated on the Main Market of the London Stock Exchange in May 2007. CINE raised £104m at the offer price. On listing, it had 142m shares in issue and its market capitalisation was £241m.
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Before 2020, Cineworld shares were considered a top pick growth stock for many investors. However, following the impact of the pandemic, the Cineplex lawsuit, and rising interest rates, the firm is struggling to stay ahead of its debts.
In 2022, management have begun exploring Chapter 11 bankruptcy options sending the Cineworld share price plummeting even further. There may be a long-term turnaround opportunity if the group can successfully execute a capital restructuring. But, it remains a highly risky investment suitable only for investors with a high risk appetite.
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No. Historically, Cineworld shares paid a cash dividend twice a year in June and September. However, since the start of the pandemic all dividend payments have ceased.
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Cineworld shares are listed on the London Stock Exchange. They can be bought from any investment account that provides access to this exchange platform.