Cineworld subscription is just the ticket

CINEWORLD’S monthly subscription cards have helped to insulate the cinema chain against an industry-wide drop in the number of film-goers during January and February, according to analysts.

The company’s “Unlimited” cards, which allow customers to see as many films as they want for a monthly fee of £14.99, account for about 20 per cent of box office takings and have helped to combat a poor selection of films at the start of the year, claimed Numis analyst Douglas Jack.

British cinemas posted a 15.7 per cent fall in box office receipts during the first eight weeks of the year as current releases such as The Woman In Black, starring Harry Potter actor Daniel Radcliffe, and even Meryl Streep’s Oscar-winning turn as Margaret Thatcher in The Iron Lady come up against tough comparisons with last year’s hits, such as Black Swan and The King’s Speech.

But Jack expects the slate of prequels and sequels due to be released later this year – including James Bond flick Skyfall, The Hobbit: An Unexpected Journey and The Twilight Saga: Breaking Dawn Part Two – will help to keep Cineworld on track for its full-year 2012 results.

Consensus forecasts for the company’s full-year results on Thursday are for revenues to have risen by 3 per cent year-on-year in 2011 to £352.9 million, while profits are expected to be up by 6 per cent to £62.7m.

Collins Stewart analyst Wayne Brown said: “The focus on Thursday is going to be on current trading and the outlook for the remainder of the year.”