Cineworld looks to 3-D to revive sales
23 August 2010 11:25
Cineworld has posted flat first half profits as higher ticket prices of 3-D films helped to offset weaker audience numbers. The cinema chain predicted that the second half of 2010 would be stronger, with the 3-D release of Harry Potter and the Deathly Hallows – Part 1 and The Chronicles of Narnia: The Voyage of the Dawn Treader.
In the 26-week period to July 1st, pre-tax profits totalled £11.8 million, up by £200,000 on the same period last year. The average ticket price rose by 7.4% during the period to £4.93, offsetting a 3% decline in admissions which fell to 22.7 million. More than 20% of total admissions came from 3-D films compared with 8% in the first half.
Cineworld screened seven 3-D films during the period and expects 18 films to be shown in 3-D in the second half of the year.
Total revenue was £162 million, 3.8% higher than last year although retail sales fell 3.3% to £38.7 million.
Speaking to The Telegraph, chief executive Stephen Wiener said that the World Cup effect hit admissions by 3%. "Whenever there is a major event that everyone in the industry knows is going to distract from going to the cinema, most of the big films are moved out from that period, which is what happened this year. The industry had a good period in July and the product line up looks great for August as well."
Trading in the second half has been given an early boost by the release of Toy Story 3, which is on course to overtake Mamma Mia as the UK's second highest grossing film of all time.
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