Cineworld reports a 24% growth in pre-tax profits

Press Release   •   Aug 15, 2013 10:53 BST

The UK's biggest cinema chain, Cineworld, said big blockbusters helped boost its box office receipts by 10.5% in the first half of the year.

Cineworld reported a 24 per cent growth in pre-tax profits and a 22 per cent jump in group revenues in the first half of the year.

Pre-tax profits rose to £16.5m from £13.3m in the same period the year before, while group revenues rose to £201.6m from £165.4m. Basic earnings per share rose 17.6 per cent to 8.0p.

The company also owns the Picturehouse chain of cinemas, where films including The Great Gatsby, Django Unchained and Argo also helped increase revenues by 9.1%.

The performance of Les Miserables, which gross around £40m nationally, alongside the spread of attendance across Iron Man 3, The Croods and Star Trek: Into Darkness, as well as The Hobbit: An Unexpected Journey, Wreck It Ralph, Man of Steel and Fast and Furious 6 and Life of Pi helped buoy attendances, as did Bollywood releases.

3D releases were lower this year, at 24 in comparison with 28 releases last year, now representing 30.5 per cent of Cineworld's box office during the first half, growing from last year's figure of 18.5 per cent.

Cineworld chief executive Stephen Wiener said the strong results showed the cinema remained popular and was a "resilient investment in challenging economic times". He said the line-up of films boded well for the second half of the year.

Upcoming films include The Wolverine and new instalments of the Hunger Games series and Hobbit series

Cineworld, which runs more than 80 sites across Britain and Ireland, said trading was ahead of last year but added that it will have a comparatively tougher fourth quarter this year due to the success of "Skyfall" last year.

Skyfall - the latest in the Bond spy film series - was the highest grossing film of all time at the British Box office earning around 103 million pounds in the UK.

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