Cineworld released results for the first half of the year on Thursday and they’re pretty knock out.
Here are the highlights:
- Pre-tax profit up 236.7% to £46.8 million ($US73 million)
- Revenue up 22.5% to £329.1 million ($US513.8 million)
- Admissions up 25.4% to 44.9 million
Those are some pretty good numbers, although the profit figure is inflated by deals and one-off costs or bonuses. Still, when these are stripped out, profits are up 73.9% to £39.3 million ($US61.2 million) — hardly disappointing.
There are two reasons behind the strong performance: a deal done last year starting to pay off and a string of big films.
First, the deal. Cineworld bought Central and Eastern European chain Cinema City at the start of 2014 for £500 million ($US780 million). In the first six months of the year Cinema City’s operations contributed £109.8 million ($US171 million), around a third of the total.
Second, the films so far this year have been much better than last, which was generally a pretty weak year for movies.
Cineworld’s CEO Mooky Greidinger highlighted Jurassic World, Fifty Shades of Grey, and Fast & Furious 7 as the stand out performers so far this year. Jurassic World broke various box office records when it came out.
The good times look set to continue for Cineworld too. Here’s Greidinger (emphasis ours):
The film release programme for the second half of the year is encouraging. Family titles such as “Minions” and “Jurassic World” have continued their strong performance into July, and the new Disney title “Inside Out” has also proved popular. Notable releases in Q3 and Q4 include “Star Wars: Episode VII”, the final Hunger Games title “Hunger Games: Mockingjay Part 2” and the next Bond film “Spectre”.
We are currently contracted to open 10 more cinemas (85 screens) before the end of the year, taking the Group to over 2,000 screens. Overall, with the anticipated strength of the film line up in the second half, coupled with our solid first half performance, we are marginally ahead of our plans for the year as a whole.
Shares are up 1.9% right now and have rallied strongly over the last month and a half.
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