Cineworld annual revenue rises 1.5%

Cinema chain Cineworld posted a 1.5% increase in total revenue for the 52 weeks to 29 December 2011 and expects full year profitability to be in line with market expectations.

In its pre close trading update the group said net box office income rose 2.7% in the last 52 weeks while retail income slipped 0.1% during the period. Other Income fell 4.4%.

"The UK and Ireland cinema industry enjoyed a satisfactory year in 2011 with industry gross box office up 4.7% against the previous year, partially boosted by an increase in the rate of VAT from 17.5% to 20% on 4 January 2011," Cineworld explained.

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The group's performance was underpinned by a strong schedule of films with crowds packing in for The King's Speech, The Twilight Saga: Breaking Dawn part 1, Harry Potter and the Deathly Hallows (part 2) and Pirates of the Caribbean: On Stranger Tides.

While Cineworld's box office performance was consistent with the overall industry performance, retail revenue was broadly flat as consumers cut back on added cinema expenses. Other income was hit by lower sales of 3D glasses and marginally lower screen advertising income.

Looking ahead the group said it looks forward to the forthcoming year with blockbusters such as The Hobbit part 1, the next Bond film Skyfall, Spiderman, The Twilight Saga: Breaking Dawn part 2, Ice Age: Continental Drift and Men in Black.

cj