Cineworld looks to St Trinians romp and Potter magic to light up its results

Published on Tuesday 27 October 2009 19:48

CINEWORLD is hoping new releases such as Sherlock Holmes and St Trinian's 2 will bring some sparkle to its full-year results.

The group, which is set to open a ten-screen cinema in Aberdeen, taking its estate to 77 sites, yesterday posted a 6.5 per cent improvement in overall revenues. Takings were boosted by a number of blockbusters including Harry Potter and the Half Blood Prince.

However, box office revenue growth in the 43 weeks to 22 October slowed sharply to 10.9 per cent, from 24.3 per cent for the half year, as takings paled into comparison with 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 reflects further weakness in screen advertising, although the firm said this was offset by retail and box office revenues.

Profits in the first half of the year rose 33 per cent to 11.6 million, and the group is forecasting further growth.

The latest batch of film hits – including the penultimate JK Rowling adventure and the animation Ice Age 3 – were more family friendly productions and helped to drive sales of sweets, resulting in 5 per cent growth in retail revenues in the period to October.

Cineworld said the increase in retail revenues was a "good performance given the challenging consumer environment, and reflects the appeal of Cineworld's retail offer and value propositions".

It said the number of films being released in 3D, including Ice Age 3, had helped boost its market share in the UK and Ireland to 23.8 per cent as it utilised its expanding digital capabilities.

The firm, which has six cinemas in Scotland, is also set to open a five-screen site in Oxfordshire , which will be the first in its stable to have digital projectors in every auditorium.

The cinema industry has largely shaken off the effects of the recession, enjoying the strongest attendance levels for seven years as consumers look for a relatively cheap night out.

According to the Cinema Advertising Association, ticket sales are up 14.5 per cent this year.