Cinema chain Everyman lost nearly quarter of its value yesterday as a disastrous trading update sent its shares crashing.
The troubled group, which runs 49 cinemas across the UK, said poor box office takings in recent months meant sales and profits will come in below City forecasts.
Shares crashed as much as 24 per cent – leaving Everyman valued at just under £25million. The stock is down more than 80 per cent since its peak in 2021.
Dan Coatsworth, head of markets at AJ Bell, said: ‘Netflix trying to buy Warner Bros arguably clouds the outlook for the cinema industry even further.
‘Should Netflix manage to fight off Paramount in the bid for Warner Bros then it’s inevitable that more big titles go straight to streaming.
‘The cinema industry is not going to disappear completely, but its trials and tribulations are getting worse.
‘This is evident in Everyman’s deteriorating share price which tells the story of a business losing fans left, right and centre.’
Wicked: For Good starring Ariana Grande and Cynthia Erivo was released in November
Everyman bosses said box office takings have been ‘weaker than anticipated’
Everyman said the box office performance in the fourth quarter of the year was ‘weaker than anticipated’.
Industry figures show UK box office revenue was down 9 per cent year-on-year in October and 33 per cent in November despite the release of Wicked: For Good.
Everyman also warned it is continuing to operate in a ‘challenging economic environment’ with rising unemployment, higher taxes and rising living costs hitting consumer spending.
The company told shareholders it expects revenue of ‘no less than £114.5million’ for the year to January 1 and profits of at least £16.8million.
These would both represent an increase on last year, but in September Everyman said it was on track to meet forecasts of £121.6million in revenues and £20million in profits.
AJ Bell’s Mr Coatsworth said: ‘Cinema operators’ fortunes are only as good as the film slate.
‘If the schedule looks weak, people aren’t going to leave the house to see something on the big screen.
‘That’s exactly what’s happened in the final quarter of the year, with Everyman bemoaning a poor UK box office performance.
‘There is only so much a cinema operator can do in this situation.’
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