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7 Jan 2010 07:00
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7thΒ January 2010
CINEWORLD GROUP PLCΒ Β Pre Close Trading UpdateΒ
Cineworld Group plc ("Cineworld" or the "Group") plans to publish its preliminary results for the twelve months ended 31 December 2009 on 11Β March 2010. Prior to entering its close period, Cineworld is pleased to announce the following pre-close trading update.Β
Revenues for theΒ 53 weeks toΒ 31Β DecemberΒ 2009:
|
53 weeksΒ % change vs. prior yearΒ (52 weeks) |
Proforma 52 weeks % change vs. prior year (52 weeks) |
|
|
Total Revenues |
+Β 11.4%Β |
+ 9.3% |
|
Box Office |
+Β 16.8%Β |
+ 14.6% |
|
Retail |
+Β 9.6% |
+ 7.6% |
|
Other Income |
-Β Β 27.3% |
- 28.7% |
TheΒ UKΒ andΒ IrelandΒ 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", "TheΒ Twilight Saga: New Moon", "Transformers: Revenge of the Fallen" andΒ "Harry Potter and the Half Blood Prince"Β and a number of 3D releases, the most notable being "Bolt", "Monsters v Aliens", "Ice Age3",Β "UP"Β and "Avatar". The number and success of films released in 3DΒ hasΒ raised the profile of this format, which in turn has had a favourable effect onΒ cinemaΒ admissions.Β
Our digital expansionΒ hasΒ continuedΒ toΒ deliver good results and the Group hasΒ capitalised on the increasing number ofΒ 3DΒ films released. ThisΒ has contributed to growth inΒ our overall box officeΒ market share in UK/Ireland toΒ 23.9%Β duringΒ the period (Source: EDI Neilsen). Given the challenging consumer environment,Β 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 performanceΒ is expected to beΒ in line with market expectations.
The GroupΒ remainsΒ highly cash generativeΒ with a strongΒ balance sheet.Β In October Cineworld opened itsΒ first cinemas with all digital projectors, a 10 screen cinema inΒ AberdeenΒ 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 timingΒ of these openings is still to be defined.
TheΒ film release programme for 2010 looks promising. Anticipated blockbusters includeΒ "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.
-Ends-
For further information:
Richard Jones 020 8987 5000
Chief Financial Officer
Cineworld Group plc
GeorginaΒ Briscoe 020 7920 2348
M:Communications
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