Yahoo Finance Dunkirk and Despicable Me 3 push Cineworld revenues up 10pc
Blockbuster hits Dunkirk, It and Despicable Me 3 have helped drive Cineworld revenues up 10.6pc over the past 10 months.
The cinema chain’s box office sales climbed 5.8pc in the UK and Ireland between January 1 and November 19, and 19pc in its overseas markets, mostly in Eastern Europe.
Cineworld said: “Growth continues to be driven by the expansion of our estate, the improved results from the ongoing refurbishment programme and the continuing roll-out of our premium formats.”
Retail revenues climbed around 13pc, thanks to increased admissions and new outlets. The chain now has 28 on-site Starbucks shops and 12 VIP lounges.
A note by analysts at Peel Hunt said: "As expected, UK trading slowed in the second half, in line with the market. Nevertheless, we are holding our forecasts as a result of strong recent trading in Eastern Europe and good quarter four prospects in the UK."
Cineworld's full-year expectations remain unchanged thanks to a strong slate of upcoming releases, including Pitch Perfect 3, Jumanji: Welcome to the Jungle and Star Wars: The Last Jedi.
Outside of the UK, locally-produced films were performing especially well, Cineworld said, with Polish hit Botoks proving a particular draw.
It opened seven new cinemas in the second half of this year, including three UK sites in Leeds, Bracknell and South Rusilip, with a total of 83 screens. It also opened six new 4DX screens, which use scents, vibrations, water and fans to make films more immersive, bringing the total number to 34.
Cineworld has grown quickly by acquiring cinemas from its rivals. In 2014 it expanded overseas by buying Cinema City for £500m.
Last year it snapped up five Empire cinemas, including its high-profile Leicester Square site in London’s West End for £94m, and in June of this year it bought another of Empire’s locations in Newcastle.
Cineworld’s private-equity backed rival Vue is thought to be exploring sale options. Former ITV boss Adam Crozier was appointed chairman in September, in what was seen by some as an attempt to boost its credibility ahead of a potential float.
