Cineworld expects annual profits to hit top end of forecasts

14th Jan 2015 08:16

Cineworld said it expects annual profits to reach towards the top end of market consensus, driven by a strong performance in the UK and Ireland.In a trading update for the 53 weeks to 1 January, the group reported a 3.5% increase in revenue growth.During the year the company opened two new cinemas in the UK and two in Romania.The group is contracted to open a further 11 cinemas in the UK and 10 in Central and Eastern Europe and Israel in 2015, of which 18 cinemas are under construction.Films due for release this year include 'Avengers: The Age of Ultron', 'Star Wars: Episode VII', 'Jurassic World', the final Hunger Games title 'Hunger Games: Mockingjay Part 2' and the next Bond film 'Spectre'."With our plans for continued expansion across the Group, we look forward to delivering further value to shareholders in 2015," the firm said.Broker Canaccord Genuity said it would nudge its full year 2014 and 2015 forecasts up fractionally to reflect the results being towards the top end of market expectations."It's been a resilient performance in a poor year for films with Poland being the stand-out market. The film slate for the next couple of years is fantastic and should allow Cineworld to exploit its strong competitive position. As importantly, the roll-out programme remains intact."