Cineworld first quarter sales whipped higher by Fifty Shades of Grey

26th May 2015 07:06

With cinema audiences whipped up by films such as 'Fifty Shades of Grey', like-for-like revenues surged 10.7% in the first quarter at Cineworld, with a stream of blockbuster films expected to deliver strong box office year ahead.In the first 19 weeks of its financial year to 14 May, the FTSE 250 company enjoyed a 26.8% increase in revenues on a statutory level, thanks to strong growth from Europe and screen advertising.Against a UK cinema market that saw admission growth accelerate from 3.5% in January-February to 15.8% in March-April, Cineworld has slightly underperformed the market as expected due to its broader-than-usual range of films.The company still increased box office revenue 23.8% on a statutory level and 9% on a pro forma level, allowing for two new multiplex openings and one Picturehouse in the period and a total of four in the UK and Central and Eastern Europe (CEE) and Israel last year.Current plans are for a further eight cinemas in the UK, of which two are smaller Picturehouse theatres, plus and eight in CEE and Israel during the remainder of 2015.All territories delivered year-on-year growth in admissions in the period, excepting Slovakia, with retail spending per customer increased 12.2% pro forma and 27.9% statutory helped by a good mix of films.The selection of blockbuster films due for release in the remainder of the first-half is described as "promising", including as is does, includes 'San Andreas' starrring Dwayne 'The Rock' Johnson; 'Jurassic World', the fourth in the Jurassic Park series, and 'Minions', a follow up to the animation success 'Dispicable Me'.The second half of 2015 is probably even more "encouraging", including 'Star Wars: Episode VII'; the final Hunger Games titles, 'Hunger Games: Mockingjay Part 2' and the next James Bond film, 'Spectre'.The company said: "With our plans for continued expansion across the group, the board remains confident of delivering a performance for the year as a whole in line with current market expectations."