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18 May 2017 07:00
18 May 2017
CINEWORLD GROUP PLC
Trading update for the period 1 January 2017 to 11 May 2017
The Group achieved revenue growth of 21.3%, 15.8% on a constant currency basis.
Constant currency revenue movements for the period were as follows:
% change vs. prior period(1)
| Cineworld Group | UK & Ireland | ROW(2) |
Total revenue | 15.8% | 17.4% | 13.3% |
Box Office | 15.9% | 17.3% | 13.6% |
Retail | 19.7% | 19.0% | 20.7% |
Other Income | 7.5% | 19.0% | 2.5% |
(1) In the table above, to provide information on a comparable basis, the % change is presented on a constant currency basis. On the basis of actual exchange rates, the total revenues increased by an amount of 21.3% (compared to the 15.8% increase on a constant currency basis).(2) ROW is defined as Rest of the World and includes Poland, Hungary, Israel, Romania, Czech Republic, Bulgaria and Slovakia.
Strong admissions growth took place across both the UK and the ROW, with particularly good performances in the UK, Israel, Romania and Slovakia. The growth was driven by the attractiveness of the film slate, the Group's new openings in the prior year and the improved results from the ongoing refurbishment programme. The highest grossing films in the period were "Beauty and the Beast", "La La Land", "Sing", "Guardians of the Galaxy Vol. 2", "The Fate of the Furious" and "The Lego Batman Movie".
Retail revenue also showed strong growth of 19.7% as a result of the increase in admissions, the nature of the film mix and the expansion of the Group's retail offerings, such as the opening of new Starbucks outlets and VIP sites. The increase in UK admissions also had a positive effect on screen advertising revenues for the period, with Other Income increasing by 7.5% across the Group, despite a particularly strong comparative period.
In May, the Group opened a new six screen cinema in Ely (UK) and the Group remains on track to open a further 12 sites during 2017. Four sites are currently undergoing major refurbishment in the UK, (the O2 in London, Ipswich, Northampton and Basildon), and there are additional refurbishments due to be completed during the year across both the UK and the ROW. As planned, the Group closed two sites during the period, Chelsea, (UK - four screens), and MOM Park (Hungary - six screens). As part of the agreed consideration for the five Empire sites acquired in 2016, the Haymarket site (UK - three screens) was transferred to Cinema Holdings Limited.
There are a number of exciting releases scheduled for May and June including "Wonder Woman", "Pirates of the Caribbean: Dead Men Tell No Tales" "Transformers: The Last Knight" and "The Mummy". Whilst still early in the year, the Group is on track to deliver a performance for the year in line with current market expectations.
The interim results for the six months to 30 June 2017 will be announced on 10 August 2017.
Contacts | |||
Cineworld Group plc | Bell Pottinger | ||
Nisan Cohen | 020 8987 5000 | Elly Williamson | 020 3772 2573 |
Israel Greidinger | 020 8987 5000 | Zara de Belder | 020 3772 2512 |
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 2,108 screens across 224 sites in the UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.
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