Shares Of Cineworld Drop

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On Thursday, the shares in Cineworld, a cinema chain, plunged by nearly six percent after it disclosed that its revenue in the United Kingdom and Ireland lagged behind the United States of Amercia in the year to the 11th of November.

The overall revenue growth of the cinema chain was 11.6 percent, a 5.9 percent increase on the year before.

However, the revenue growth in the United Kingdom and Ireland was 7.1 percent, dropping to 2.1 percent because of adjustments for currency.

Cineworld disclosed that a series of successful films such as Ant-Man and the Wasp and Black Panther boosted its revenue in the United States.

However, this was counteracted by slow figures for the United Kingdom and Ireland, despite an improvement that was noted in the second half of the year thanks to Bohemian Rhapsody and Mamma Mia! Here We Go Again.

Last March, Cineworld completed a deal to acquire the Regal Entertainment Group for $3.4bn (£2.6bn). It made it the second-largest cinema chain in the world behind AMC Theatres.

Broker Peel Hunt stated: “Trading has remained strong in the US and management remains confident of fully achieving its synergy target from Regal.”

He added: “For this year, these factors outweigh the impact of the UK and mainland Europe trading slightly behind as well as a rising cost of debt.”

However, the shares of Cineworld were down almost six percent after the publishing of the results.

The chief financial officer of Cineworld, Nisan Cohen, stated: “We’re delighted with the strong performance year to date, led by a strong US turnout and with a second-half uplift in the UK and Europe.”

He added: “The integration is on track, including plans for renovation and opening new sites, and we look forward to providing further updates in due course.”

The firm said that its plans for Regal are “progressing well” and that there are some exciting releases for the remainder of the year. It said that its forecast for full-year results continued to be in line with expectations.