15 Nov 2018 07:00
FOR IMMEDIATE RELEASE
15 November 2018
CINEWORLD GROUP PLC ("the Group")
Trading update for the period 1 January 2018 to 11 November 2018.
Revenue growth of 11.6% achieved for the Group on a pro-forma basis(1). The Group remains on track to deliver a performance for the year in line with our current expectations.
Pro-forma(1) revenue movements for the period were as follows:
|
Actual ($) |
|
Constant Currency(2) ($) | |||||||
| Group(1) | US(1) | UK & Ireland | ROW(3) |
| Group(1) | US(1) | UK & Ireland | ROW(3) |
|
Total revenue | 11.6% | 13.2% | 7.1% | 6.6% |
| 10.2% | 13.2% | 2.1% | 2.2% |
|
Box Office | 10.7% | 12.4% | 6.4% | 5.8% |
| 9.3% | 12.4% | 1.4% | 1.2% |
|
Retail | 12.5% | 13.7% | 7.9% | 9.7% |
| 11.4% | 13.7% | 2.9% | 5.3% |
|
Other Income | 13.7% | 16.5% | 9.9% | 4.5% |
| 12.3% | 16.5% | 4.7% | 0.7% |
|
(1) 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. Performance against the comparative period has been calculated by taking the Cineworld Group 2017 reported period and adding the Regal performance for the same period, converted to IFRS with consistent acquisition accounting adjustments applied, to present the consolidated performance as if Regal had been acquired on 1 January 2017.
(2) Constant currency movements have been calculated by applying the 2018 average exchange rates to the 2017 performance.
(3) ROW is defined as Rest of the World and includes Poland, Romania, Hungary, Czech Republic, Bulgaria, Slovakia and Israel.
On a pro-forma basis, Group admissions increased by 5.9% compared to the same period in the prior year. The growth was driven by a strong film slate in the US for the year to date, improved performance in Europe in the second half of the year and development of the estate through refurbishments and additional premium offerings.
The strength in the US market was supported by the success of "Black Panther" and "Avengers: Infinity War" in the first half and "Mission: Impossible Fallout", "Ant-Man and the Wasp" and "Venom" in the second half. The growth in admissions in the US compared with the prior year has benefitted each of the Group's revenue streams.
Our European markets saw an uplift in performance in the second half of the year. This was driven by "Mamma Mia! Here We Go Again", "Incredibles 2" and "Bohemian Rhapsody" in the UK. Locally produced films performed well across the ROW, particularly in Poland where "Kler" became the highest grossing film of all time.
During the second half of the year the Group continued to expand with four new sites (31 screens) opened (two in the US and two in the UK), in addition to the six sites opened in the first half of the year. Five further new sites are expected to open before the year-end (three in the US and two in the UK). The total number of sites in the Group at 11 November 2018 is 789 with 9,526 screens.
Investment in the latest technology continues to be a key pillar of the Group's strategy. During the period, the Group announced an agreement to install 100 ScreenX auditoriums. ScreenX is the world's first multi-projection immersive cinema auditorium, which provides a panoramic 270-degree viewing experience. So far in 2018, ten ScreenX and seven 4DX screens have been opened across the estate. Our refurbishment programme in the US is underway and number of major refurbishments are currently on-going in the UK.
The expected plans for Regal are progressing well with management continuing to review further opportunities for integration benefits. The Group recently announced the rebranding of Regal and the launch of its new logo. As previously announced, Regal's new brand is part of the wider strategy to commit significant investment to the Group's estate and operations in the US to ensure that Regal is 'The Best Place to Watch a Movie!'.
There are a number of exciting releases scheduled for the remainder of the year including, "Fantastic Beasts: The Crimes of Grindelwald" opening tomorrow, as well as "Aquaman" and "Mary Poppins Returns" in December. The Group remains on track to deliver a performance for the year in line with our current expectations.
Contacts
Cineworld Group plc: |
| Powerscourt: |
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| 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 |
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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 9,526 screens across 789 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.
CINE.L (CINE)