Ann: Cineworld Trade Agreement and FY22 Revenue Guidance Update, page-2

This stock is immune to good news.

First China gives in to COVID and does a big bang re-open. Just in time for tier 1 cities to get through the wave before the critical Chinese NY cinema period. Means next year (at least 2H one would think) should benefit from a couple million dollars of maintenance revenue starting to be recognised from the only partially owned China operation. I estimate this was a $3.9m drag on FY22 vs. FY21 revenue ($1.5m in 1H22, $2.4m in 2H22).

Then signs one of the largest global cinema circuits to Vista Digital/Cloud a week ago and does nothing.

Then highlights the absolute criticality of its ERP offering today with Cineworld agreeing to pay it (including unsecured receivables) even though it is in Ch 11 protection.

Oh and also upgrades revenue guidance 5.5-6.5% on the last trading day of the year.

And goes up all of 3%.

Has to be a standout for a potential bid by PE. Trading 2.3x sales (2H annualised assuming very bottom of guidance range). There has to be a bunch of costs they could take out of the thing also.