3D blockbusters prove hit for Cineworld

The pre-Christmas release of Avatar, which has already secured

worldwide sales of more than one billion US dollars, contributed to a 16.8 per cent rise in Cineworld's ticket takings in 2009, or by 14.6 per cent on a proforma 52-week basis.

A raft of strong recent releases boosted box office revenue growth after a slowdown from 24.3 per cent to 10.9 per cent at the 43-week stage.

The 790 cinema-chain said it had been a strong year for movies overall, with releases such as Oscar winner Slumdog Millionaire, The Twilight Saga: New Moon, Transformers: Revenge of the Fallen and the penultimate Harry Potter instalment, Harry Potter and the Half Blood Prince.

It was also the year in which 3D took audiences by storm as the industry looked for ways to revive box office sales.

Avatar was the latest in a line of 3D releases, coming after 3D cartoons Bolt, Monsters vs Aliens and Ice Age 3.

Cineworld said demand for 3D films had helped it take a 23.9 per cent share of the cinema market in 2009, as it used its digital capabilities.

The group opened its first cinema with all digital projectors in October, while it also opened a 10-screen cinema in Aberdeen and a five-screen cinema in Witney the same month.

Increased box office takings are helping offset a slump in "other" revenues such as advertising – down 28.7 per cent on a proforma 52-week basis – amid the recession.

But retail sales in cinemas held up well, ahead 7.6 per cent, helping overall proforma revenues rise 9.3 per cent.

Cineworld said: "Given the challenging consumer environment, the growth in the group's box office and retail revenues reflects a strong performance and the broad appeal of Cineworld's overall offer and value propositions.

"The performance in these two core revenue streams has more than compensated for the decline in other income, principally screen advertising revenue, which reflected generally weak advertising demand."

And the group is confident for 2010 due to a "promising" line-up, including the first part of JK Rowling's Harry Potter and the Deathly Hallows and Shrek 4.