17 Jan 2018 07:00
FOR IMMEDIATE RELEASE
17 January 2018
CINEWORLD GROUP PLC
Trading update for the year ended 31 December 2017 - Revenue growth of 11.6% achieved.
Revenue movements for the year were as follows:
Actual |
Constant Currency | ||||||
Group | UK & Ireland | ROW(1) | Group | UK & Ireland | ROW(1) | ||
Total revenue | 11.6% | 5.9% | 20.8% | 7.9% | 5.9% | 10.9% | |
Box Office | 10.3% | 6.3% | 17.7% | 6.9% | 6.3% | 8.0% | |
Retail | 15.6% | 7.1% | 29.2% | 11.8% | 7.1% | 18.8% | |
Other Income | 10.3% | 1.1% | 19.3% | 5.8% | 1.1% | 10.1% | |
(1) ROW is defined as Rest of the World and includes Poland, Hungary, Israel, Romania, Czech Republic, Bulgaria and Slovakia.
Admissions in both the UK & Ireland and the ROW increased compared with the prior year. Growth has been driven by the expansion of our estate, the improved results from the ongoing refurbishment programme and the continued roll-out of our premium formats. The highest grossing films for the year in the UK were "Beauty and the Beast", "Star Wars: The Last Jedi" and "Dunkirk". Locally produced films continued to perform well across the ROW, especially in Poland where "Listy Do Movie 3" and "Botoks" were the top performing films for the year.
Retail revenue showed strong growth of 15.6% (11.8% constant currency), particularly in the ROW with growth of 29.2% (18.8% constant currency). Retail revenue is a function of admissions, economic and spending trends in each local market and was positively impacted by the expansion of the Group's retail offerings. The Group opened five Starbucks sites and three VIP sites in 2017 bringing the total to 29 Starbucks sites and 12 VIP sites at 31 December 2017. For the Group, Other Income growth has primarily been driven by the ROW, with growth in both the advertising and distribution income streams.
The Group made significant progress with its expansion and refurbishment programme. At the end of 2017 the Group operated 232 sites with 2,217 screens. This includes nine sites (110 screens) opened during 2017, four in the UK and five in the ROW, as well as the Empire Newcastle site (16 screens) acquired in June 2017. The Group proactively managed the existing estate through its refurbishment and selective site closure programme. During the year four refurbishments were completed in the UK, (Hemel Hempstead, Ipswich, Northampton and Solihull) and two in Poland (Arkadia and Mokotow). There are number of sites currently under refurbishment including at Leicester Square and The O2 in London. Four of the Group's smaller sites were closed during the year, three in the UK and one in Hungary.
The Group continued with its strategy to invest in technology and be leaders in the industry, with 11 4DX screens, 2 Superscreens and 2 IMAX screens opened during the year. At the end of 2017 the Group had a total of 38 4DX screens, 35 IMAX screens and 11 Superscreens.
There is a strong film slate for 2018 which includes "Jurassic World: Fallen Kingdom", "Fantastic Beasts: The Crimes of Grindelwald", "Avengers: Infinity War", "The Incredibles 2", "Mamma Mia! Here We Go Again" "Solo: A Star Wars Story", "Deadpool 2", "Fifty Shades Freed" and "Mary Poppins Returns".
After a successful outcome in 2017 the Group is positioned well for another year of progress in 2018.
Contacts
Cineworld Group plc: | Powerscourt: | ||
Israel Greidinger | 020 8987 5000 | Rob Greening | +44 (0)20 7250 1446 |
Nisan Cohen | 020 8987 5000 | Nick Dibden | cineworld@powerscourt-group.com |
Lisa Kavanagh | |||
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 one of the leading cinema groups in Europe with the number one or number two position by number of screens in each of its regions. Cineworld currently operates 2,217 screens across 232 sites in the 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.