Partly Cloudy

Partly Cloudy

max temp: 19°C

min temp: 18°C

ESTD 1874 Search

Leisure: Cineworld hoping for better second half after impact from World Cup

09:46 14 August 2014

The Cineworld cinema in Parkway, Bury St Edmunds.

The Cineworld cinema in Parkway, Bury St Edmunds.

Archant

Cineworld is pinning its hopes on a raft of potential blockbusters movies to improve its performance this year after box office takings were dented by the World Cup.

shares

The cinema chain today reported a 3.4% decline in UK and Ireland admissions for the first half of the year which, though offset by higher prices, saw ticket revenues fall by 0.5%.

It was also hit by signs that the popularity of 3D screenings appear to be fading, with these representing 16.3% of admissions in the first half compared to 18.7% in the same period last year.

Cineworld said the final stages of the World Cup had also hampered trading at the start of the current period.

But it said there was a strong film line-up for the second half, including Guardians of the Galaxy, and the latest instalments of the Hunger Games and Hobbit franchises.

Chief executive Moshe Greidinger said: “Overall, the strength of the film line-up in the second half, coupled with our solid first half performance, gives us confidence and we are on track with our plans for the year.”

UK and Ireland total revenues, which included better retail takings from food and drink concessions, grew 0.3% in the period.

The figures are the first half-year results since Cineworld completed a takeover of Cinema City, an Israeli-founded chain, earlier this year. It created a company with 200 outlets and nearly 2,000 screens across Europe and Israel.

Pre-tax profits fell 15.8% to £13.9million after one-off hits including takeover expenses and finance charges though on an adjusted basis they improved by 46.2%. Group revenues climbed 33.2% to £268.6m.

Mr Greidinger, who has taken over as boss after previously being chief executive of Cinema City, said the group expected to achieve annual savings of £5 million as a result of the merger within the next three years.

The chief executive’s family now controls a chunk of the business through Warsaw-listed Global City Holdings, which has a 26.1% stake in Cineworld.

Global City is majority-owned by Israel-based IT International Theatres, controlled by the Greidinger family.

Cineworld’s UK network includes multiplex cinemas in Ipswich, Bury St Edmunds, Haverhill and Braintree.

In June, it sold the Abbeygate Picturehouse in Bury, acquired as part of its takeover of City Screen in 2012, following a ruling by the Competition Commission that it must sell one of its locations in the town.

The Hatter Street site, which now operates as the Abbeygate Cinema, was acquired by a new company led by City Screen founding partner Tony Jones.

shares

1 comment

  • simples, reduce the price, get more people in.... basic common sense if you ask me !!!!

    Report this comment

    Simon Chivers

    Thursday, August 14, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Anne Holt of Baker Tilly.

East Anglia’s many ports and logistics businesses are being advised to prepare for new European Union customs duty arrangements which come into force next year.

Alan Cowie, communications and events officer at the| New Anglia Growth Hub.

New Anglia Growth Hub is to host a funding workshop, bringing together five providers of business support under one roof.

The Birketts Tour de Wellbeing cycle team, from left, Matthew Potter, Ben Burt, Jolyon Berry (front) Greg Jones and Tom Shape.

Members of the employment team at regional law firm Birketts raised more than £1,000 for Breast Cancer Care by taking part in the Tour de Wellbeing virtual cycle race, held by EMCOR UK to coincide with the Tour de France.

A plane in Flybe's latest purple livery.

Regional airline Flybe has confirmed its 2015-16 winter schedule to and from Stansted.

The head office of BT, the BT Centre, in Newgate Street, central London.

Thousands of BT workers are to share in a £265million payout under share-related savings schemes which will see some employees making gains of more than £54,000.

Lloyds has added £1.4billion to its bill for compensating customers mis-sold payment protection insurance.

State-backed Lloyds Banking Group’s provision for payment protection insurance mis-selling has topped £13billion after it yesterday took another £1.4billion hit over the scandal.

A computer-generated image of how the Sizewell complex will look after construction of Sizewell C.

Development of Sizewell C took a huge step forward today as the companies were announced that will build its sister nuclear power station in Somerset.

Gary Allen, operations manager,  with Diane Allen and Graham Allen at Ipswich-based Ajax Domestic Spares which is celebratiing 40 years in business.

Ajax Domestic Spares has marked 40 years in business in style by launching a new showroom in Foxhall Road, Ipswich.

The Great House restaurant with rooms in Lavenham.

An award-winning Suffolk restaurant has gained another accolade after being ranked the 26th best in the country.

Gavin Patterson, chief executive of BT.

Photo: BT

BT is to pay out up to £129million to extend the Government-led roll-out of superfast broadband, after a bigger-than-expected take-up of the service.

Most read

Topic pages