Mediocre movies see Cineworld suffer
Nick Clark is the arts correspondent of The Independent. He joined the newspaper in June 2007, initially reporting on the stock markets. He has covered beats including the City, and technology, media and telecoms and made the switch to arts in December 2011. He has also contributed articles to the sports section.
Friday 19 August 2011
The cost of going digital and a run of average 3D blockbusters have dragged Cineworld's profits down this year, but the group is confident that a strong slate in the second half will see it hit full-year targets.
The cinema chain, which is the largest in the UK by market share, saw operating profits fall to £13m in the six months to the end of June, down from £14.8m a year earlier.
The profits were lowered by the cost of the company's strategy to convert its screens to digital. By the end of June, 494 screens had been converted, with a further 80 due this year.
Also, despite the release of The King's Speech, at the start of the year "overall the film slate was weaker", the company said. While there were more than double the seven 3D releases of the first six months of 2010, none could match the popularity of Avatar or Alice in Wonderland. Admissions for 3D films dropped from 20 per cent a year earlier to 16 per cent. Yet group revenues rose 1 per cent to £164m as wider admissions rose 2.2 per cent.
Stephen Wiener, the chief executive of Cineworld, said that he was confident for the full year, pointing to forthcoming movies including The Adventures of Tintin: Secret of the Unicorn, Twilight Saga: Breaking Dawn – Part I and Mission: Impossible – Ghost Protocol.
"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," he said.
- 2 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 3 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Russian hack of President Obama's emails worse than previously admitted
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Nepal earthquake: US Pastor Tony Miano sparks outcry by suggesting Nepalis should convert and not rebuild their 'pagan shrines'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...