16 May 2018 07:00
FOR IMMEDIATE RELEASE
16 May 2018
CINEWORLD GROUP PLC
Trading update for the period 1 January 2018 to 13 May 2018.
Revenue (1) growth of 10.1% achieved for the Group on a pro-forma basis(2). The Group remains on track to deliver a performance for the year in line with our current expectations.
The Group completed the acquisition of Regal Entertainment Group ("Regal") on 28 February 2018. Following the acquisition of Regal, the Group has changed its presentational currency to US dollars to remove the largest driver of currency translation volatility and provide greater transparency of the underlying trading performance of the Group.
Pro-forma revenue movements for the period were as follows:
|
Actual ($) |
|
Constant Currency(3) ($) | ||||||
| Group(2) | US(2) | UK & Ireland | CEE(4) & Israel |
| Group(2) | US(2) | UK & Ireland | CEE(4) & Israel |
Total revenue | 10.1% | 10.2% | 9.2% | 11.1% |
| 6.7% | 10.2% | -2.1% | -2.4% |
Box Office | 9.6% | 9.8% | 9.2% | 8.9% |
| 6.1% | 9.8% | -2.0% | -4.7% |
Retail | 9.9% | 9.7% | 8.3% | 13.8% |
| 6.9% | 9.7% | -2.9% | 0.3% |
Other Income | 14.0% | 14.2% | 11.6% | 15.3% |
| 10.0% | 14.2% | 0.1% | 2.9% |
(1) Revenue movements are presented prior to the finalisation of the purchase price adjustments which are required to be determined in accordance with IFRS3, Business Combinations for the acquisition of Regal.
(2) Pro-forma results reflect the Group and US performance had Regal been consolidated for the entirety of the period from 1 January 2018. For the purposes of percentage movements, the same comparative period has been applied.
(3) Constant currency movements have been calculated by applying the 2018 average exchange rates to the 2017 performance.
(4) CEE is defined as Central Eastern Europe and includes Poland, Hungary, Romania, Czech Republic, Bulgaria and Slovakia.
Group admissions increased by 1.1% on a pro-forma basis, largely driven by the success of "Black Panther" and "Avengers: Infinity War" in the US. The latter exceeded the previous opening weekend box office record. The strength of admissions in the US compared with the prior year has driven the growth in each of the Group's revenue streams.
European markets had very strong comparatives, including "Beauty and the Beast" and "The Fate of the Furious". As anticipated, the strength of the film slate during this period has impacted the UK & Ireland and CEE & Israel revenue on a comparative basis. The highest grossing films for the period to 13 May 2018 in the UK were "Avengers: Infinity War", "Black Panther" and "The Greatest Showman".
The Group acquired 558 sites (7,305 screens) with the Regal acquisition, and a further two sites (24 screens) were opened in the US post acquisition. During the period the Group has continued to expand in its existing territories with two new sites (14 screens) opened in the UK and one in Romania (6 screens). This brings the total number of sites in the Group at 13 May 2018 to 793 with 9,548 screens. The integration plans for Regal are progressing well and the transaction benefits expected to be achieved remain in-line with those outlined at the time of the acquisition.
Investment in technology continues to be a key pillar of the Group's strategy. During the period the Group announced significant new agreements with both IMAX and 4DX, with plans to install a total of 55 new IMAX Laser projectors across the full estate and 80 4DX screens in the US, which will bring the total number of 4DX screens in the Group to 145. During the period five 4DX screens were opened, three in the UK, including one at the iconic Leicester Square cinema, where the first stage of the refurbishment has now been completed. A number of other major refurbishments are currently on-going in the UK and the refurbishment programme in the US is expected to commence shortly.
There are a number of exciting releases scheduled still to come in the first half of 2018 including, "Deadpool 2", "Solo: A Star Wars Story" and "Jurassic World: Fallen Kingdom". The release schedule for the second half of 2018 is also strong with the anticipated release, amongst other films, of "Incredibles 2", "Mamma Mia! Here We Go Again", "Fantastic Beasts: The Crimes of Grindelwald" and "Mary Poppins Returns".
The interim results for the six months to 30 June 2018 will be announced on 9 August 2018 and will be presented in US dollars.
Contacts
Cineworld Group plc: |
| Powerscourt: |
|
Israel Greidinger | +44 (0) 20 8987 5000 | Elly Williamson | +44 (0)20 7250 1446 |
Nisan Cohen |
| Celine MacDougall | cineworld@powerscourt-group.com |
Manuela van Dessel |
| Sam Austrums |
|
Notes to editors
About Cineworld Group plc
Cineworld Group plc was founded in 1995 and listed its shares on the London Stock Exchange in May 2007.
The company has grown through expansion and by acquisition to become the second largest cinema chain worldwide, holding the number one or number two position by number of screens in each of its regions. Cineworld currently operates 9,548 screens across 793 sites in the US, UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
The person responsible for this announcement is Fiona Smith, Company Secretary of Cineworld.