Smurfs 2 and The Wolverine tipped to help Cineworld

A RAFT of big releases such as Smurfs 2 and The Wolverine are tipped to help cinema operator Cineworld shrug off the summer heatwave.

Pop star Katy Perry at the Smurfs 2 premiere. Cineworld profits are tipped to hit £17.5m. Picture: Getty

Analysts are expecting a “strong” first-half performance from the chain, which has 80 sites in the UK, including seven in Scotland.

A trading update last month revealed that Cineworld’s market share had climbed by 0.5 percentage points to 25.2 per cent.

The rise is expected to trigger a 21.9 per cent year-on-year increase in revenues to £201.6 million, with pre-tax profits forecast to climb to £17.5m from £12.6m.

Like-for-like sales – excluding the takeover of the Picturehouse chain – are predicted to rise by 10.5 per cent, although the figure will be flattered by a “weak” 1 per cent increase last year.

The City is expecting even more from Cineworld during its current trading quarter.

N+1 Singer analyst Sahill Shan said: “The hot July will inevitably have impacted trading, especially during the busy weekend period. How­ever, the only major movie of note released in the period has been Despicable Me 2, with the slate much stronger for August – Monsters University, The Lone Ranger, The Wolverine and Smurfs 2 to name a few.

“These releases coincide with the school holidays and a weak comparative owing to the Olympics. Overall, so long as the weather remains variable, third-quarter trading should not disappoint.”

Disney last week warned it stands to lose £122m on The Lone Ranger after it flopped in the United States.