Curtain up at Cineworld as lockdown ends, but threats remain

Cineworld’s shares rose as people returned to cinemas in their droves. But streaming companies such as Netflix and Amazon aren’t standing still. Matthew Partridge reports

People outside a Cineworld cinema
(Image credit: © JUSTIN TALLIS/AFP via Getty Images)

Cineworld’s shares, which have already more than tripled from a low of 25p last October, jumped by another 4% early this week, says Naomi Ackerman in the Evening Standard: box-office receipts for the first weekend after cinemas were allowed to reopen in the UK “smashed expectations”. Not only has attendance “soared”, but revenues were increased further by punters “splashing out on popcorn and other treats”. All this raises hopes that the chain can recover from a disastrous 2020, when it suffered an “eye-watering” £1.7bn loss and was forced to seek a £900m bailout from investors.

It’s not just the UK powering Cineworld’s recovery, says James Warrington in CityAM. The reopening of 167 cinemas in the US means that 97% of its screens are now active, while restrictions are due to be relaxed in Poland and Israel. CEO Mooky Greidinger expects a “good recovery in attendance over the coming months” thanks to a “full slate of films” including action-thriller F9, which has already had “record breaking” success in Asia. While cinemas face intensifying competition from the rise of streaming services, Cineworld has signed an “exclusive deal” with Warner Bros securing a 45-day window of exclusivity following films’ release from next year.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri