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Summary
- While the stocks of Cineplex Inc are down about 71 per cent this year, they grew by 104 per cent in November alone.
- Discovery Inc is set to join the populated landscape of online streaming domain from January next year.
- Discovery stocks climbed nearly 54 per cent in the last nine months.
The COVID-19 outbreak this year changed the way we perceive entertainment. While going out for movies became a distant dream, binge-watching content on online streaming platforms and the television turned into the new normal. As a result, businesses of movie theatre chains such as Cineplex Inc (TSX:CGX) suffered while channels run by media companies like Discovery Inc (NASDAQ: DISCA, DISCA:US) saw a rise in demand.
Now, Cineplex’s business is noting a rebound as the economy reopens and Discovery is venturing into the competitive world of online streaming. Let’s delve in to understand the profiles of these two entertainment stocks better.
cineplex inc (tsx: cgx)
current stock price: C$ 9.82
Lockdown restrictions saw theatre chain Cineplex Inc’s business suffer quite acutely this year. However, as the economy reopened and different pharmaceutical companies made progress with COVID-19 vaccines, Cineplex also noted an improvement in its performance.
Cineplex stocks registered a decline of 32 per cent in the last six months after having nosedive amid the coronavirus pandemic-triggered market collapse in March.
While the stocks of Cineplex Inc are down about 71 per cent this year, they grew by 104 per cent in November alone.
Cineplex Inc’s YTD performance chart (Source: EODHD/Others/Thomson Reuters)
cineplex inc third quarter results
The top Canadian movie theatre chain recorded a 85.4 per cent year-over-year (YoY) drop in its third quarter of 2020, amounting to C$ 61 million. Its box office revenues stood at C$ 14.5 million, while its food service revenues were C$ 15.5 million in Q3 2020.
Its adjusted EBITDA stood at a loss of C$ 46.7 million in the latest quarter.
Even as most of its movie theatre outlets has opened in the third quarter of 2020, Cineplex Inc’s theatre attendance plummeted 91.1 per cent to 1.6 million from 17.5 million in Q3 2019.
discovery inc (NASDAQ: DISCA, disca:us)
current stock price: us$ 28.24
Following the footsteps of Walt Disney and HBO, Discovery Inc is now set to join the populated landscape of online streaming domain with Discovery+ from January next year.
Stocks of the mass media company are down almost 14 per cent this year. But since the market lows of April, Discovery stocks climbed nearly 54 per cent in the last nine months.
Discovery shares shot up 27 per cent in the last six months and 33 per cent in November.
Discovery inc third quarter results
Discovery Inc’s total revenues of US$ 2.56 billion were down four per cent YoY in the third quarter of 2020. Its US distribution revenues, however, were up two per cent, while its advertising revenues dropped eight per cent in Q3 2020.
The company recorded a net income of US$ 300 million in the latest quarter. The cash provided by its operating activities in the third quarter stood at US$ 860 million.
Discovery reported a free cash flow of US$ 787 million in the Q3 ending 30 September 2020.
