Toy Story 3 works its magic for Cineworld Group plc
Screen advertising continues to make encouraging progress compared to the prior year in the companys interim management statement
For the 42 week trading period to 21 October 2010, total revenues were up 8.5%. Box office receipts were up 8.3%, retail up 1.5% and other income up 43.8%.
The Group's box office revenues, have underpinned Cineworld's healthy performance since the end of June.
The second half of the financial year has delivered a number of successful films including "Shrek Forever After (3D)", "The Twilight Saga: Eclipse" and "Toy Story 3" (3D). The latter is the biggest film release of the year to date grossing over £70m in the UK/Ireland (Source: Rentrak/EDI). The higher number of admissions since the half year end has helped to increase retail revenues in what remains a challenging consumer environment.
Screen advertising has continued to make encouraging progress compared to the prior year. DCM is capitalising on growing signs of recovery in the cinema screen advertising market and recently secured a contract from Vue Entertainment Limited which will commence in January 2011. Other income has also increased, reflecting strong trading through booking fees, theatre hires and the sale of 3D glasses. Cineworld's market share of UK Box Office during the current year to 21 October 2010 was 24.5% (2009: 23.8%) (Source: Rentrak/EDI).
The company’s ongoing investment in digital continues with the next stage of their programme to install a further 150 digital projectors by the end of January 2011. Once completed over 50% of their 801 screens will be digital, with the vast majority being 3D enabled, further extending capability to offer more 3D and alternative content to customers.
The company says that the remaining 2010 film line up together with the strong performance to date gives them confidence in delivering continued growth for the full year at least in line with market expectations.
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