Cineworld ushers in 2011 with return of frozen-out film fans

Big draws such as the Robert De Niro comedy Little Fockers and a remake of Gulliver's Travels saw Cineworld admissions return to normal after a snow-hit December, the group said yesterday.

The company, which operates 801 screens at 78 sites, said the heavy snowfall and freezing temperatures last month had a negative impact on box office and retail revenues as travel to cinemas became difficult.

But it said as the freeze eased, admissions returned to normal, with movie-goers drawn in by blockbusters such as the latest Harry Potter film. After a strong overall performance across the year, the company expects to meet profit expectations.

Cineworld reported a 4.2 per cent rise in box office revenues in the 52 weeks to 30 December, compared to 2.7 per cent seen across the industry. But retail revenues, mostly from food and drink, were down 1.5 per cent.

The company enjoyed a boost to sales from 3D films in the year, including Avatar and Toy Story 3 - which became the highest and second highest grossing films respectively in the UK box office.

Cineworld is rolling out digital screens across its estate, with half the screens now using the technology. The firm's box office share grew from 23.9 per cent in 2009 to 24.6 per cent in 2010.

Its advertising division - Digital Cinema Media - had a strong year, boosting the company's "other income" by 39.9 per cent.

The company said it was confident "attractive" releases - including the final Potter film and Pirates of the Caribbean: On Stranger Tides - would maintain its performance in 2011.

James Cooke, an analyst at brokerage Panmure Gordon, said profits before tax for the full year should be within 34.4 million to 35.5m.

He added: "Cineworld is a highly cash-generative business, consistently delivering substantial dividend payments to shareholders. We believe that investors should, if nothing else, consider this to be a reliable income stock."