Cineworld Group plc ("Cineworld" or "the Group") is pleased to provide the following trading update at the commencement of the close period prior to the announcement of its preliminary results for the 52 weeks ended 27 December 2012 which is due to be made on 7 March 2013.
Revenues for the 52 weeks to 27 December 2012 (excluding Picturehouse)
% change vs. prior year
Overall we anticipate that profitability for the year will be in line with market expectations.
The UK and Ireland cinema industry enjoyed a satisfactory year in 2012. Despite the distractions from the Queen's Diamond Jubilee celebrations, the European Football Championship and the London Olympics, industry gross box office grew by 2.8% against the previous year (Source: Rentrak/EDI). As expected, the full year was weighted towards the fourth quarter and strong admission numbers alleviated the expected slower performance during the third quarter. Included in the fourth quarter was "Skyfall" which, to date, has grossed over £100m in the UK and is the highest grossing film in the history of UK and Ireland cinema. There were also strong film performances in the quarter from the concluding film of the Twilight series "Twilight Saga: Breaking Dawn (part 2)" and "The Hobbit".
Cineworld's box office benefitted from a better average ticket price, up 5.0% against prior year and offset by 1.1% lower admissions. Overall box office market share in UK/Ireland was maintained at 24.7% for the year (2011: 24.8%) (Source: Rentrak/EDI).
Spend per person for the year increased by 1.9% compared with the previous year, more than offsetting reducedadmissions volume.
As previously outlined, the decline in other income for the year was due to the removal of the booking fee and comparatively lower 3D glasses sales, resulting from fewer 3D films shown in the period. Screen advertising revenues were marginally ahead as compared with the prior year.
We were pleased to open a new seven screen Cineworld cinema in Aldershot at the end of October and this and our recent acquisition of Picturehouse cinemas, on 6th December 2012, means we start 2013 with 101 cinemas and 878 screens. We have plans to open multiplex cinemas under the Cineworld brand in Wembley, Gloucester and St Neots during 2013. Picturehouse brings further opportunities for growth within a specialised sector of the cinema market under the Picturehouse brand and management. Since acquisition Picturehouse has traded in line with expectations.
There is an attractive film release programme for 2013 which includes "Les Miserables", "Star Trek", "Iron Man 3" and "The Hobbit part 2". With our plans for continued expansion, we look forward to delivering further value to shareholders in the forthcoming year.
For further information:
Philip Bowcock 020 8987 5000
Chief Financial Officer
Cineworld Group plc
Elly Williamson 020 7920 2330
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