5 Jul 2012 07:00
EMBARGOED FOR RELEASE AT 7AM, 5 July 2012
CINEWORLD GROUP plcTrading Update
Cineworld Group plc ("Cineworld" or the "Group") is due to publish its interim results for the 26 weeks ended 28 June 2012 on 16 August 2012. At the start of its close period, Cineworld is pleased to announce the following trading update.
Revenues for the 26 weeks ended 28 June 2012:
% change vs prior year 26 weeks | |
Total Revenues | + 1.1% |
Box Office | +4.1% |
Retail | -2.1% |
Other Income | -18.7% |
Trading for the first half of the financial year is as expected and in line with previous guidance. A +4.1% increase in Box Office revenue was achieved reflecting growth in average ticket price and marginally lower admission levels (-0.8%). The removal of booking fees and launch of a 10% discount for tickets booked online has significantly accelerated the growth of "MyCineworld" registrations, which will grow a dedicated customer base and support enhanced customer relationship management in the future.
Cineworld's box office market share was slightly lower in the period at 24.7%1 (2011: 24.9%). The cinema market1 in general grew approximately 4.3% in the period. Total retail revenue was affected by marginally lower spend per person of 1.3% reflecting the challenging consumer environment.
Screen advertising revenues, (which make up over half of "Other Income"), were -10.9% below the previous year, reflecting the general trend in the wider advertising market, and the anticipated focus of advertising on the European football championships. The balance of "Other Income" was impacted primarily by the removal of the booking fee, as well as lower sales of 3D glasses.
Looking ahead to the second half of the financial year, our plans to open a new seven screen cinema in Aldershot and the completion of the conversion of our digital projection estate by the end of the summer are all progressing on schedule.
While the timing of the Olympics is expected to add to the challenges of a tough third quarter comparative, the film line up has strong 3D product in the second half, which includes "The Amazing Spiderman", "Ice Age 4" and "The Hobbit" and is matched by an exciting range of 2D films including "The Dark Knight Rises", the concluding film of the Twilight series "Twilight Saga: Breaking Dawn (part 2)" and the next Bond title "Skyfall". As a result we remain confident of delivering growth for the year as a whole in line with current market expectations.
1 Refers to UK/Ireland market by gross box office - data per Rentrak/EDI
For further information:
Cineworld Group plc | 020 8987 5000 | M:Communications | 020 7920 2339
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Philip Bowcock
| Elly Williamson Matthew Neal
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