India – Carnival group has acquired small Indian multiplex operator Glitz, having previously bought most of Big Cinemas.
After buying Anil Ambani’s Big Cinemas, the Carnival Group has picked up elder brother Mukesh Ambani’s majority stake in Stargaze which operates the multiplex chain “Glitz” for an undisclosed amount. Network 18 Media and Investments Ltd, on Thursday said its venture capital unit, Capital 18 has sold nine operational screens in Rajasthan, MP, Chhattisgarh, Uttaranchal and UP and one non-operational screen. Network 18 has sent a brief notice to the exchanges. The latest acquisition take the Carnival group ,which has over 300 screens, closer to their top competition PVR which still leads at 462 screens. Around two weeks ago, the Shrikant Bhasi-led Carnival acquired Big Cinemas for around Rs 700 crore. LINK
USA – Will cheaper oil/petrol prices lead to more discretionary income and more cinema visits? This Seeking Alpha analyst thinks so.
The stunning collapse in the price of oil can be considered a “tax cut” that will allow for additional spending. To quantify the impact, it is expected that the average family will see an additional $500 in funds which can be earmarked as they see fit. With wage growth virtually stagnate over the past few years; the relief on the consumer due to lower energy prices will be welcomed. In my view, an investable trend has emerged where a clear path for higher discretionary spending. Unlike in recent times, I expect consumers to continue to be cautious with their spending and expect some of the funds to be earmarked for savings and debt reduction which will consume a portion of the savings. With this backdrop in mind, the stronger plays will be those companies that offer affordable luxuries to the masses. The theatrical exhibition chains neatly fall into the above definition as their product is affordable and offers a bit of an “escape” from the everyday routine. In the article below, I will detail the investment case for AMC Entertainment Holdings Inc (NYSE:AMC). LINK