Cineworld hoping for Harry Potter magic

29th Jun 2011 09:26

Cineworld, the cinema chain, says revenues will remain unchanged on the first half of 2010, in line with previous guidance.In a trading statement the company says box office receipts are up 1.1% on the equivalent period last year but retail sales are down 0.7%Much of a cinema's money is made from selling food and drinks but the first six months of this year were tough, according to Cineworld.One of its biggest films for the period, "The King's Speech" attracted a sizeable audience but the demographic was generally older than normal and older customers do not spend as much on food and drink.Screen advertising revenues were 1.6% below the previous year reflecting the general trading pattern from the film mix.However, the release of more 3D films between May and June boosted retail sales, with cinemas coining it from the hire of 3D glasses.Other highlights include the opening of what Cineworld describes as a "premium cinema concept" called the "Screening Rooms" in Cheltenham.The third quarter sees the 3D release of the finale to the Harry Potter series "Deathly Hallows 2", plus "Cars 2" and "Transformers: Dark of the Moon," but improving on 2010 still looks difficult as the comparable period saw "Toy Story 3", "Inception" and "Shrek" bringing in the punters.Nevertheless, the final quarter is expected to be strong with the release of "Mission Impossible 4" and "Sherlock Holmes 2".At 9:51am (29/6/11), shares in Cineworld were trading at 199.75p, up 4p on the day.BS