Companiesandmarkets.com

Cineworld boosted by blockbuster releases

Press Release   •   Jul 04, 2013 12:33 BST

Cineworld has reported strong growth in the first half of the year, with films such as Iron Man 3 and Star Trek Into Darkness helping the chain take box office market share from rivals Vue and Odeon & UCI.

Excluding Picturehouse, Cineworld cinemas generated a 10.4 per cent increase in box office revenues, reflecting growth of 4.6 per cent in the average ticket price and an increase in admissions of 5.5 per cent.

The strong growth meant Cineworld's market share of the box office in the UK and Ireland rose to 25.2 per cent, up from 24.7 per cent in the same period last year

With Picturehouse's sales - which rose 12.9 per cent - factored in, Cineworld saw revenues rise 21.9 per cent in the half year to 27 June.

Philip Bowcock, Cineworld's chief financial officer, said the rise in market share was "very encouraging" and demonstrated that the group's marketing strategies, such as an "unlimited" subscription package for members and free online booking, were starting to yield results.

However, although the company said there is a strong pipeline of 3D films in the next few months, it admitted that it doesn't expect growth in the second half of 2013 to be as strong as the comparative period in 2012, when Skyfall sent people flocking to cinemas.

The UK was ranked the 4th biggest market in the world with an annual box office haul of $1.7bn last year, behind the US/Canada ($10.8bn), China ($2.7bn) and Japan ($2.4bn) and ahead of France ($1.7bn) and India ($1.4bn).

The industry is still anticipating a host of blockbusters in the next few months, with Despicable Me 2, Monsters University, the second Hobbit film and the next instalment of the Hunger Games trilogy all promising healthy box office figures.

For more information on the cinema market, see the latest research: Cinema Market Research

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