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Tuesday, 2nd December 2008

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Cineworld buoyed by new releases



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Published Date: 21 August 2008
THE UK's second largest cinema chain today said a strong release schedule had boosted attendances since the end of June.
Cineworld said Mamma Mia and Batman: The Dark Knight were proving popular as the company looks to make up for a lacklustre film line-up in the first half of its financial year. Half-year earnings slipped to £21.5 million from £21.7 million a year ear
lier after admissions came in 4.8 per cent lower than a year ago, driven by the "relative absence of blockbuster films" during the period.

Chief executive Stephen Wiener described the first half performance as solid and said the current releases increased confidence in the full-year outlook.

Cineworld, which operates 74 cinemas and 770 screens, said it planned to open a further seven cinemas over the next three years.

Cineworld said its average ticket price per admission improved to £4.34 from £4.09, while average retail spend per person rose to £1.73 from £1.64.

The company said new coffee and alcohol suppliers, plus more Ben & Jerry's outlets and the upgrade of several retail areas drove the improvement.

In the face of cost pressures on some products, most notably in confectionery, ice cream and popcorn, Cineworld said it had maintained margins through improved operational efficiency.

Box office receipts were up 1% to £89.6 million after film highlights of the first half came late in the period, with the June releases of Indiana Jones and the Kingdom of the Crystal Skull and Sex and the City. Cineworld added that its market share remained firm during the half-year period at 23.6 per cent.

Bollywood also represented a key part of its offering, with the company claiming a market share of 61% in this genre.]

Commenting on the results, chairman Tony Bloom said: "This is a solid set of results, particularly when viewed against a backdrop of far fewer blockbuster films in the period and an increasingly challenging consumer environment."



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  • Last Updated: 21 August 2008 8:29 AM
  • Source: n/a
  • Location: Yorkshire
 
 
  

 
 


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