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Highlights
- Cineworld registered a reduction in operating loss to $208.9 million in H1 2021 compared to a loss of $1,340.9 million in H1 2020.
- Everyman recorded an operating loss of £7.7 million compared to a £12.3 million loss in the same period in 2020.
Entertainment stocks, particularly those belonging to multiplex and cinema operators, witnessed a huge setback during the COVID-19 pandemic, as lockdowns and restrictions imposed resulted in temporary shutdowns across the country. Cineworld was one of the companies which went through a severe crisis due to the pandemic.
However, with lockdowns having ended and amid rising vaccination, the performance of the companies in the sector is expected to get a boost in the coming months. As audiences, throng cinema theatres post lifting of lockdown and social distancing restrictions, the performance of entertainment companies is projected to grow.
Investors keen on diversifying their portfolio may add entertainment stocks to their portfolio to leverage the recuperating demand. Here is a detailed review of the investment potential in two FTSE listed entertainment stocks, Cineworld Group Plc and Everyman Media Group Plc.
(Data source: EODHD/Others)
Cineworld Group Plc (LON: CINE)
Cineworld is one of the largest UK-based multiplex cinema chains. The company operates in 10 countries across 759 sites and 9,269 screens. In September, Cineworld announced a payment of $170 million to the shareholder of Regal Entertainment, who were unhappy with the price they received post takeover of the US chain in 2017.
Cineworld Group’s shares are currently trading at GBX 70.76, down by 1.64% at 10:34 AM BST on 8 October 2021. The company’s market cap currently stands at £987.73 million.
Cineworld’s revenue for H1 ended 30 June 2021 was $292.8 million compared to $712.4 million in H1 2020, and adjusted EBITDA loss was $21.1 million compared to a profit of $53.0 million in H1 2020. The company registered a reduction in operating loss to $208.9 million in H1 2021 compared to a loss of $1,340.9 million in H1 2020.
The shares of Cineworld Group gave a return of 162.07% in the last one year to shareholders.
Everyman Media Group Plc (LON: EMAN)
AIM-listed Everyman Media Group is one of the leading premium cinema chains based in the UK. For the half-year ended 1 July 2021, its revenue was £7.7 million compared to £15.0 million in H1 2020, impacted by temporary closures due to COVID-19 in the first 20 weeks of 2021.
Everyman Media Group’s shares are currently trading at GBX 132.50 at 10:22 AM BST on 8 October 2021. The company’s market cap currently stands at £120.79 million.
Everyman Media Group recorded an adjusted EBITDA loss of £1.4 million in H1 2021 compared to a profit of £0.5 million in H1 2020, and an operating loss of £7.7 million compared to £12.3 million loss in the same period in 2020.
The shares of Everyman Media Group gave a return of 86.79% in the last one year to shareholders.
