1 Jul 2009 07:00
1 July 2009
CINEWORLD GROUP plc Trading Update
The Board of Cineworld Group plc ("Cineworld" or "the Group") today announced the following trading update for the 27 week trading period to 2nd July 2009.
Estimated revenues for the 27 weeks to 2nd July 2009:
| % change vs. prior year (26 weeks) | Proforma 26 weeks % change vs prior year (26 weeks) | |
| Total Revenues | + 16.5% Est | + 12.2% Est |
| Box Office | + 22.5% Est | + 17.9% Est |
| Retail | + 14.8% Est | + 10.6% Est |
| Other Income | - 23.4% Est | - 26.3% Est |
Cineworld enjoyed healthy trading in the first half of 2009. This performance reflected the fact that there were more high grossing films than in the comparable period in 2008. As an example, "Slumdog Millionaire", which grossed in excess of £31m in the UK and Ireland, was an unexpected success, winning eight Oscars. Other notable films in the period included "Star Trek"," Transformers" and "X-Men". Cineworld's box office market share remained constant during the period (at circa 23.5%). Other income is below the level of last year, in part due to the softening in advertising demand in the wider market but also due to the absence of the Carlton Screen Advertising minimum guarantee which had been in place through to February 2008. Whilst trading in our core business is ahead of expectations, resulting in strong growth in total revenues, this has been offset in part by cost pressures, such as increased utility prices.
We remain on track to expand our estate as a whole with the openings of a new ten screen cinema in Aberdeen and a new five screen cinema in Witney, both during the second half of the year. In addition the Group's recent investment in its digital estate and roll-out of 3D facilities has shown very encouraging results with Cineworld enjoying a market share of 39% for "Coraline" following on high market shares for "Bolt" (48%) and "Monsters v Aliens" (45%).
The outlook for the remainder of the year is promising thanks to an exciting line up of films such as "Harry Potter and the Half Blood Prince" as well an increasing number of 3D releases including "Ice Age 3", "Up",and "Toy Story".
The Group will publish its interim results for the six months ended 2nd July 2009 on 20th August 2009.
For further information:
| Cineworld Group plc | 020 8987 5000 | M Communications | 020 7153 1548 | |
| Richard Jones Chief Financial Officer | Georgina Briscoe |