29 Jun 2011 07:00
EMBARGOED FOR RELEASE AT 7AM, 29 June 2011
CINEWORLD GROUP plcTrading Update
Cineworld Group plc ("Cineworld" or the "Group") plans to publish its interim results for the six months ended 30th June 2011 on 18th August 2011. Prior to entering its close period, Cineworld is pleased to announce the following pre-close trading update.
Estimated revenues for the 26 weeks to 30 June 2011:
% change vs prior year 26 weeks | |
Total Revenues | + 0.0% |
Box Office | +1.1% |
Retail | - 0.7% |
Other Income | -8.8% |
The Group is pleased to report trading in line with previous guidance in the first half of 2011 which was achieved against a very tough 2010 comparative. We outlined in our previous interim management statement for the 19 weeks to 12 May 2011 that much of the adverse variance against prior year was due to the film schedule up to that date which contained no major 3D releases. As we anticipated, the situation reversed in the remaining period of the first half this year, which saw more 3D film releases and an overall uplift in cinema going.
Cineworld's box office market share increased during the period to 24.9%1 (2010: 24.2%). Market box office in the period was approximately 0.9% higher than the prior year. In the previous year 3D accounted for 27% of market box office, driven by "Avatar" and "Alice in Wonderland" whilst this year 3D accounted for approximately 20%. Total retail revenues remained broadly level against last year, a creditable result in a challenging consumer environment and with a less favourable mix of films. Films such as "The King's Speech", while being a successful film, attracted a higher proportion of older customers who on average spend less on food and drink.
Screen advertising revenues were 1.6% below the previous year reflecting the general trading pattern from the film mix. The balance of other income was also impacted by the sale of glasses from lower 3D admissions.
The Group has continued its ongoing investment in digital equipment and currently 60% of Cineworld's screens have digital capability equating to 485 screens. Cineworld opened a new premium cinema concept as planned, called "The Screening Rooms", a three screen cinema in Cheltenham on 17th June. The pre-conditions to completing the acquisition of Cinesurremain outstanding and the associated negotiations will continue into the second half of the year.
The second half has a strong line-up of 2D and 3D films. The third quarter sees the 3D releases of the finale to the Harry Potter series "Deathly Hallows 2", "Cars 2", "Transformers: Dark of the Moon" and "Captain America: First Avenger" against a challenging comparative which included "Toy Story 3", "Inception" and "Shrek". In contrast, the final quarter, against a weaker comparative, sees a solid line up of 3D films which include "Tintin", "Puss in Boots" and "Happy Feet 2" and an exciting range of 2D films including "Twilight Saga: Breaking Dawn (part 1)", "Mission Impossible 4" and "Sherlock Holmes 2". As a result we remain confident of delivering growth for the year as a whole in line with market expectations.
1 Refers to UK/Ireland market by gross box office for the 25 weeks to 24 June 2011 - data per Rentrak/EDI
For further information:
Cineworld Group plc | 020 8987 5000 | M:Communications | 020 7920 2339
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Tony Yoe | Elly Williamson |