A big Quantum of Solace for cinema operator

Published on Thursday 21 August 2008 21:41

QUANTUM of Solace, the new James Bond film, will drive admissions in Cineworld's fourth financial quarter, the UK's second-largest cinema chain predicted yesterday.

Revenues at the company, which has six cinemas in Scotland, edged up by just under 1 per cent in the 26 weeks to 26 June, reaching 137 million.

Pre-tax profits stood at 8.7m, compared with a loss of 1.1m in the same period last year.

Box office receipts rose by 1 per cent to 89.6m, although the number of admissions fell by 4.8 per cent. The average ticket price rose by 6.1 per cent to 4.34.

Tony Bloom, Cineworld's chairman, said there had been "fewer blockbuster films" in the first half of the company's financial year but that sales had been boosted in June by Sex And The City and Indiana Jones And The Kingdom Of The Crystal Skull. The average amount that customers spent on popcorn, drinks and chocolates rose by 5.4 per cent to 1.73.

Cineworld said its retail sales had been boosted by the introduction of the Coffee Republic brand into its cinemas and by switching to Carlsberg as its alcohol supplier.

More Ben & Jerry's ice-cream kiosks were also installed to boost retail sales.

In addition to the new James Bond film, which opens in the UK on 31 October, Cineworld said other strong releases in the autumn include High School Musical 3 and Madagascar 2.

Cineworld reiterated its plans to open seven new cinemas over the next three years, including a ten-screen cinema in Union Square, the new shopping centre development in Aberdeen.

Cineworld's market share for the UK and Ireland remained firm at 23.6 per cent over the first six months of the year, making it the UK's second-largest cinema chain behind Odeon.

Cineworld has 74 cinemas in the British Isles and 770 screens.

Bloom said: "This is a solid set of results, particularly when viewed against a backdrop of far fewer blockbusters in the period and an increasingly challenging consumer environment.

"The second half has started very well for the group and we have some exciting new releases ahead of us in the remainder of the year and beyond."