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Cineworld doubles up to £28m and views 3D as the way ahead

Rosamund Urwin
12 Mar 2009


Cineworld, the UK's second-biggest cinema owner, enjoyed a blockbuster 2008, and today said it believes the future is in 3D.

It reported pre-tax profits more than doubled to £27.6 million for the year ending on Christmas Day 2008, on turnover up 4.8% to £298.9 million.

Chief executive Stephen Wiener said: "We are upbeat. We are like the Eveready battery - we just keep on going."

Film-lovers were tempted by a string of hit movies including Mamma Mia! - Britain's highest-ever grossing film - Batman flick The Dark Knight, James Bond's latest Quantum of Solace, and Indiana Jones and the Kingdom of the Crystal Skull.

The success of these helped Cineworld shrug off the postponement of the release of the next Harry Potter film to this summer.

The company sounded a cautious note on trading for this year, given the economic outlook and that Wiener said he did not expect any surprise hits like Mamma Mia to boost bums on seats.

However, it believes it will benefit from its investment in 3D projector technology. Wiener said that by the end of next month, more than 80% of Cineworld's estate will have digital equipment.

It has already seen strong demand for films such as animated comedy Bolt. Another 13 movies will be released in 3D this year, including a version of Toy Story. Wiener is keen to move into showing sports in 3D.

Cineworld has also managed to attract a more highbrow audience by showing the New York Metropolitan Opera and the Nutcracker ballet in high definition.

But it has seen a slight drop in market share from 23.7% to 23.3%, which Wiener attributes to rivals expanding fast er. Admissions were flat last year at 45.1 million. But there was bad news for punters with the average price of a ticket rising by 6.3% to £4.38 as the group looks to offset higher labour and energy costs.

At a time when many companies are slashing or axeing their shareholder payouts, Cineworld has kept its full year dividend unchanged at 9.5p.

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