Blockbusters fuel Cineworld profit rise

Cinema chain Cineworld posted almost a 10% rise in annual pre-tax profit as movie goers continued to see the year's big blockbusters despite tough economic times.

Pre-tax profit rose to £33.4m for the 52 weeks ended 29 December 2011 compared to £30.4m the year before. Group revenue rose 1.5% to £348m helped by a string of big releases during the Christmas season.

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Average ticket price per admission rose 0.4% to £5.01 while average retail spend per person was down at £1.69 compared to £1.73 in 2010.

Chief executive officer Stephen Wiener commented, "In 2011 we once more increased revenues and profits, showing the continuing appeal of cinema even in difficult economic times."

Following the release of popular films such as Harry Potter, the Twilight series and Pirates of the Caribbean in 2011, Cineworld said it is looking forward to a strong line-up in 2012.

"We expect to complete our digital roll-out by the end of the summer, expand further with a new seven screen cinema in Aldershot in the fourth quarter and continue our investment in innovation to improve the customer experience," Wiener said.

The group said a new 5-year facility of £170m was negotiated in March to finance future expansion and other opportunities.

Cineworld's chairman Anthony Bloom concluded, "We have made a sound start to the new financial year and whilst the forthcoming European football championship and London Olympics will present further challenges, there is a strong line up of films to support the rest of the year. I remain positive about the future prospects of the group."

A full year dividend of 11p has been offered, up 4.8% from last time.

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