Cineworld revenues increase despite the World Cup finals
BRITISH cinema chain Cineworld believes new 3D films from popular franchises like Shrek, Toy Story and Harry Potter will help it attract audiences after a downturn triggered by the World Cup.
Cineworld, which runs 78 mainly multiplex cinemas, said revenues rose 3.7 per cent in the first half of its financial year, even though the world’s biggest football tournament, in South Africa, was dragging potential filmgoers away from the big screen.
Its box office market share rose to 24.3 per cent in the 26 weeks to 1 July, from 23.5 per cent the same time last year, helped by the popularity of 3D films Avatar and Alice in Wonderland, and sequels Iron Man 2 and Sex and the City 2.
But retail revenues fell 3.2 per cent, reflecting a “challenging consumer environment” as cinema goers worried about higher taxes and public spending cuts. This was offset, however, by a 31.4 per cent jump in “other income” from screen advertising, booking fees, screen hires, games machines and 3D glasses.
Cineworld did not give actual figures for its revenue performance.
Earlier this month, the group announced a partnership with Arts Alliance Media to roll out digital projectors across its cinemas within the next three years, which it believes will enable it to capitalise on the trend towards 3D films.
“This strong line up of films together with our performance to date underpins our confidence in the overall outlook for the year,” Cineworld said in statement.”
Upcoming 3D releases include Shrek Forever After.