image

Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

SIGN UP NOW
Updates

Cineworld

February 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CINE
  • Price:
  • 190.5p
Just when you thought Cineworld had its hands full integrating larger US rival, Regal, they announced the acquisition of Canadian cinema operator Cineplex for an enterprise value of C$2.8bn (US$2.1bn). Cineplex is Canada’s largest cinema operator, with a 75% box office market share, operating 165 cinemas with 1,695 screens. The combined group will be the largest North American operator.After expected combination benefits of US$130m (excluding US$20m costs) it implies an enterprise value / EBITDA multiple of 6.3x and is expected to be “double digit” eps enhancing. That’s because it will be debt funded with net debt / EBITDA expected to peak at 4.3x pre synergies before falling to 3x by year end 2021. The deal ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

Cineworld - Exciting film slate and pent up demand could drive re-rating (September 2021)
Cineworld (April 2020)
Cineworld (September 2019)
Cineworld - Sale and leaseback yields special dividend (July 2019)
Cineworld - Results trigger broker upgrades (May 2019)
Cineworld - Cinema chain transformed by US acquisition (April 2019)
Cineworld (July 2018)
Cineworld - Transformational US acquisition (March 2018)
Cineworld - Cinema operator boosted by Hollywood blockbuster (October 2017)
Cineworld (July 2017)
Cineworld - Acquires five cinemas for £94m (October 2016)
Cineworld (May 2016)
Cineworld (March 2016)
Cineworld (October 2015)
Cineworld - Cinema chain to benefit from strong film release schedule (September 2015)
Cineworld - Second largest cinema chain expanding rapidly (July 2015)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X