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.
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.
Box office was up 2.7% at £242.1m from the year before while admissions increased 2.3% against 2010.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published