Cineworld – 234.2p

8 August 2019 – interim results

Interim results for the six months to 30 June 2019 have been released.  Total admissions decreased by 14.4% to 136.0m on a pro-forma basis due mainly to the difference in timing of major releases.  Total revenue for the period was US$2,151.2m, a fall of 11.1% on a pro-forma constant currency basis.  Profit on ordinary activities after tax in the period was US$117.4m (2018: US$128.4m).  The inclusion of two additional months results from Regal in the period and one off adjusting items in the period were more than offset by softer admissions and the impact of IFRS 16 which has had a negative impact on the results for the period.  Basic earnings per share amounted to 8.6c (2018: 11.1c) and adjusted diluted earnings per share were 9.4c (2018: 13.1c).  Dividends are paid quarterly and the ex-dividend date for the next payment of 3.75c per share is 12 September.  Cash generation remains strong at the operating level and total net cash generated from operations in the period was US$589.4m.  Net debt was US$7,011.3m at the period end, significantly more than the balance as at 31 December 2018.  Of the net increase US$3,351.7m related to impact of IFRS 16.  The shares have fallen significantly in recent months and with some attractive releases scheduled for the second half, now looks a good time to BUY.

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