Cineworld revenues up as UK, RoW divisions post record results

Writer, Stock Market Wire
Thursday, March 15, 2018 - 07:39

Cineworld said revenues rose 11.6% to £890.7m on statutory basis for the year ended in December supported by an uptick in admissions growth of 3.5% to £103.8m.

UK & Ireland saw revenue growth of 6.2% amid an increase in both box office revenue and net retail spend per admission. Admissions in the year increased by 2.3%, reflective of the film slate and additional cinemas acquired and opened in 2016 and 2017.

Rest of the World (ROW) revenue growth was 20.5% on a statutory basis and 10.7% on a constant currency basis, supported by admission growth in Poland, Romania, Israel and Slovakia. Rest of the World box office revenue, however, declined slightly to 57% from 58.2% the previous the year.

Cineworld said they plan to open a further 381 screens in the next four years in the UK and ROW, 75 of which are scheduled to open in 2018.

Pre-tax profit rose 22.7% on a statutory basis to £120.5m, while adjusted pre-tax profits rose by 14.5% to £127.5m.

Adjusted diluted EPS increased by 12.3% to 17.3p and the group declared a final dividend of 15.4p per share.

The group said Cineworld is now the second largest cinema chain in the world - by number of screens - following the acquisition of Regal Entertainment Group in February.

'The US is the biggest cinema market in the world and we are confident that this transformative acquisition will be a great success,' Cineworld said.

Anthony Bloom, Chairman of Cineworld plc said: '2017 was an exciting year for the Cineworld Group - the most momentous since its formation in 1995. For the financial year ended 31 December 2017, the Group's operations in the UK and ROW once again posted record results and then in December we announced the proposed acquisition of Regal Entertainment Group for $3.4bn which has successfully completed on 28 February 2018.'

'It is particularly gratifying that the Regal acquisition received strong support from our shareholders - 87.3% of shareholders voted in favour of the acquisition at the General Meeting on 2 February 2018 and 96.3% followed their rights in the subsequent Rights Issue'

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