Cineworld sees profits rise 33 per cent on the back of blockbusters

Oct 28 2009 by Graeme Brown, Birmingham Post

Cineworld says blockbusters including Harry Potter and the Half Blood Prince have helped it post a 6.5 per cent improvement in revenues. But the cinema operator saw box office revenue growth in the 43 weeks to October 22 slow sharply to 10.9 per cent, from 24.3 per cent for the half-year, as takings paled into comparison to last year when Mamma Mia stormed to success in an “exceptional” third quarter.

Cineworld has also seen a 26.9 per cent slump in other income, which mainly reflects weakness in screen advertising, although this was offset by retail and box office revenues.

The firm said new releases such as Sherlock Holmes, St Trinian’s 2 and A Christmas Carol gave it confidence that it will deliver continued growth for the full 12 months in line with market expectations.

Cineworld saw profits rise by 33 per cent in the first half to £11.6 million, and it has anticipated further growth. The latest batch of movie hits - including the penultimate J K Rowling wizard adventure and the animation Ice Age 3 - were more family-friendly and helped drive sales of sweets, resulting in five per cent growth in retail revenues in the period to October.

Cineworld said the increase in retail revenues was good given the challenging consumer environment. It said the number of films being released in 3D helped boost market share in the UK and Ireland to 23.8 per cent as it utilised expanding digital capabilities.