7 Jan 2010 07:00
7th January 2010
CINEWORLD GROUP PLC Pre Close Trading Update
Cineworld Group plc ("Cineworld" or the "Group") plans to publish its preliminary results for the twelve months ended 31 December 2009 on 11 March 2010. Prior to entering its close period, Cineworld is pleased to announce the following pre-close trading update.
Revenues for the 53 weeks to 31 December 2009:
| 53 weeks % change vs. prior year (52 weeks) | Proforma 52 weeks % change vs. prior year (52 weeks) | |
| Total Revenues | + 11.4% | + 9.3% |
| Box Office | + 16.8% | + 14.6% |
| Retail | + 9.6% | + 7.6% |
| Other Income | - 27.3% | - 28.7% |
The UK and Ireland cinema industry enjoyed another good year in 2009 with industry box office up 11% against the previous year, according to information collated by Nielsen EDI. This box office growth was underpinned by a strong release schedule, which included "Slumdog Millionaire", "The Twilight Saga: New Moon", "Transformers: Revenge of the Fallen" and "Harry Potter and the Half Blood Prince" and a number of 3D releases, the most notable being "Bolt", "Monsters v Aliens", "Ice Age3", "UP" and "Avatar". The number and success of films released in 3D has raised the profile of this format, which in turn has had a favourable effect on cinema admissions.
Our digital expansion has continued to deliver good results and the Group has capitalised on the increasing number of 3D films released. This has contributed to growth in our overall box office market share in UK/Ireland to 23.9% during the period (Source: EDI Neilsen). Given the challenging consumer environment, the growth in the Group's box office and retail revenues reflects a strong performance and the broad appeal of Cineworld's overall offer and value propositions. The performance in these two core revenue streams has more than compensated for the decline in Other Income, principally screen advertising revenue, which reflected generally weak advertising demand. While cost pressures have continued, overall profit performance is expected to be in line with market expectations.
The Group remains highly cash generative with a strong balance sheet. In October Cineworld opened its first cinemas with all digital projectors, a 10 screen cinema in Aberdeen and a 5 screen cinema in Witney. Both cinemas have had very strong openings. These two new cinema complexes increase the Group's estate to 790 screens at 77 locations. Development plans for further new cinemas are in place, although the timing of these openings is still to be defined.
The film release programme for 2010 looks promising. Anticipated blockbusters include "Harry Potter and the Deathly Hallows (part 1)", "Shrek 4 (2D & 3D)", "Alice in Wonderland (in 3D)", "Toy Story 3 (2D & 3D)", "Sex And The City 2", "Iron Man 2" and "The Twilight Saga: Eclipse". This and our operating results in 2009 give us confidence in Cineworld's performance going into the year ahead.
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For further information:
Richard Jones 020 8987 5000
Chief Financial Officer
Cineworld Group plc
Georgina Briscoe 020 7920 2348
M:Communications