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Shares of Cineworld gained Friday after the U.S. and U.K. movie theater operator said it generated positive cash flow in the fourth quarter.
Cineworld
CINE,
shares rose 3%, and have now gained 25% for the year, on recovery hopes. December was particularly strong, Cineworld said, due to the success of “Spider-Man: No Way Home” across all territories. In the U.S., box office and concession revenue rose to 91% of 2019 levels in December, from 56% in November and 80% in October. Company wide, box office and concession revenue rose to 88% of 2019 levels from 56% in November and 90% in October.
Cineworld is appealing a Canadian decision awarding Cineplex
CGX,
C$1.2 billion ($960 million) for not following through with an acquisition. Cineworld said it formally served its notice of appeal of the decision of the Ontario Superior Court of Justice on Wednesday.
“Given the cinema operator’s precarious financial position it literally cannot afford to have more cash going out the door every month than it is taking in through sales of confectionary, drinks, snacks and film tickets,” said Russ Mould, investment director of U.K. broker AJ Bell.
Cineworld’s larger rival AMC Entertainment
AMC,
has dropped 24% this year, though that stock is up a staggering 864% over the last 12 months.
The FTSE 100
UKX,
turned lower in afternoon trade, losing 0.5%, as pessimism engulfed Wall Street
ES00,
ahead of the open.
Stay-at-home plays including delivery service Royal Mail
RMG,
and supermarket delivery firm Ocado
OCDO,
paced the FTSE 100 downturn.
In the midcap FTSE 250, electronics retailer Currys
CURY,
dropped 4% after lowering profit guidance following a 5% drop in like-for-like sales in the crucial Christmas period.
