Cineworld thinking big again after the snow

The company, which operates 801 screens in 78 sites, said the heavy snowfall and freezing temperatures last month had a negative impact on box office and retail revenues as travel to cinemas became difficult.

But Cineworld said as the bad weather eased, admission levels returned to normal, as movie-goers were drawn in by blockbusters such as the latest Harry Potter film. After a strong overall performance across the year, the company expects to meet profit expectations.

Cineworld reported a 4.2 per cent increase in box office revenues in the 52 weeks to December 30, compared to 2.7 per cent seen across the industry. But retail revenues, mostly from food and drink, were down 1.5 per cent in the year.

The company enjoyed a boost to sales from 3D films in the year, including Avatar and Toy Story 3, which became the highest and second highest grossing films respectively in the UK box office.

Cineworld is rolling out digital screens across its estate, with half the screens now using the technology. The company's box office share grew from 23.9 per cent in 2009 to 24.6 per cent in 2010.

The company's advertising division – Digital Cinema Media – had a strong year as well.

Looking ahead into 2011, the company said it was confident an "attractive" release schedule – including the second instalment to the final Harry Potter film and Pirates of the Caribbean: On Stranger Tides – would maintain its performance. Shares closed last night at 222.75p, up 11.75p.