Profits take a tumble at Cineworld

18th Aug 2011 07:36

Profits at cinema group Cineworld dropped by over 40% in the first half, but the firm remained upbeat in regards to its second half and full-year prospects.Pre-tax profit for the six months to 30 June fell to £6.9m, from £11.8m in the first half of 2010, "because of the one-off, non trade related items of £3.2m and the write off of £2.2m relating to the hedge on the previous bank loan," the firm said. Basic earnings per share dropped from 5.6p to 3.6p.Meanwhile, sales edged 1% higher to £163.6m, from £162m the year before, despite Cineworld predicting that revenues would be flat in its trading statement in June. While box office revenue rose by 2%, retail sales improved by just 0.3%, due to "tough trading conditions together with a less favourable mix of films." Retail spend per customer fell from £1.71 to £1.67.Nevertheless, chief executive officer Stephen Wiener remained optimistic over the group's full-year performance: "The second half of the financial year has started strongly for the Group, with an excellent range of blockbusters and 3D films."Titles including Twilight Saga: Breaking Dawn Part 1, Mission Impossible: Ghost Protocol and Sherlock Holmes 2 will premier in the fourth quarter."The strength of the film line up in the second half, coupled with our solid first half performance, underpins our confidence in performing in line with market expectations for the year and delivering further value to shareholders," Wiener said.Net debt fell from £115.5m the year before to £100.7m as of 30 June. The board declared an interim dividend of 3.6p per share, up from 3.4p in 2010.BC