23/08/2010

The Cineworld cinema chain has reported profits for the first half of the year despite falling admissions due to the football World Cup and Britain enjoying an unusually warm summer that normally keeps punters outdoors.

The group reported revenues of £162 m, up 3.8% from 2009. Profits before tax increased 5.2% to £24.4 m. Operating profits were £14.8 m, down from £15.2 m in 2009. The company’s net debt reduced to £115.5 m from £121.4 m in 2009.

Box office receipts were up 4.1% at £111.7m against 2009. However, this is due to the chain’s average ticket price being hiked from £4.59 per ticket to £4.93. Admissions were down to 22.7 m, 3% lower than 2009. The company attributes this to the World Cup.

Cineworld Group CEO Stephen Wiener said, “We are pleased to announce good growth in first half revenues despite the impact of the World Cup which, as anticipated, resulted in a quiet June. We have had a busy first half strategically and announced important news for both our customers and shareholders.

“We signed a transformational deal with Arts Alliance Media to roll out digital screens across our entire estate, which will enable us to offer our customers greater choice, both in 2D and 3D films, as well as exhibiting a wider range of alternative content. We also expanded our estate and now operate the cinema at the O2 Centre in London, and have announced plans to be part of the major Wembley development scheduled to open in 2013.”

“The strong film line-up in the second half, coupled with our solid first half performance, underpins our confidence in performing in line with market expectations for the year and delivering further value to shareholders,” he added.