Cineworld Group plc
18 January 2008
Cineworld Group PLC
18th January 2008
CINEWORLD GROUP PLC
Pre-Close Trading Update
Cineworld Group plc ('Cineworld' or the 'Group') will publish its preliminary
results for the twelve months ended 27th December 2007 on 18th March 2008. Prior
to entering its close period, Cineworld issues the following trading update.
The UK Cinema industry enjoyed a solid year during 2007 with UK industry box
office up 6.9% against the previous year, according to information collated by
Nielsen EDI. This reflects the strong film release schedule which included Harry
Potter and the Order of the Phoenix, Pirates of the Caribbean: At World's End,
Shrek 3 and The Simpsons Movie. Set against this backdrop, Cineworld performed
well, increased its market share of box office to 23.7% in the period (2006:
23.5%) and grew admissions at its continuing sites by 4.8%. The Group expects to
report EBITDA for the 2007 financial year towards the top of the range of
current market expectations.
In May 2007, Cineworld opened a new cinema in Didcot, Oxfordshire, which is
performing ahead of expectations and brings the total number of cinemas in the
estate to 73 with 758 screens. Our national expansion plans remain a key
strategic priority for the Group as we seek to deliver growth for our
shareholders. March 2008 will see the opening of a new 12 screen cinema in High
Wycombe and towards the end of the year a new five screen cinema is scheduled to
open at Haverhill. We have also signed contracts on two further sites in
Aldershot & Witney, currently scheduled to open in 2009.
In October 2007 we announced a deal with Real-D to bring 3-D digital technology
to certain cinemas across the estate. This deal coincided with the release of
the 3D version of Beowulf, which launched in the UK on 16th November 2007, and
we feel confident its success will encourage the release of further films in
this format. It also strengthens Cineworld's leading position in the digital
arena and we are proud to be able to offer our customers the largest digital
estate of any cinema operator in the UK.
Discussions with Carlton Screen Advertising ('CSA') concerning the
screen-advertising sales contract are continuing. While these are in progress
the Group has agreed with CSA that the full contracted amount can be paid on a
month by month basis rather than six monthly in advance; the first instalment
was received by the Group at the end of December 2007.
The Group is pleased to report that 2008 has started strongly with the
successful release of I Am Legend. Whilst it is very early in the new financial
year, the outlook for 2008 looks promising with a compelling line up of proven
film franchises which include The Chronicles of Narnia, Batman, The Mummy, Harry
Potter, Star Trek, James Bond and a new instalment of Indiana Jones.
-Ends-
For further information:
Georgina Briscoe 020 7153 1530
M:Communications
Notes for Editors and Analysts:
- Cineworld is the UK's second largest cinema operator with 73 sites and 758
screens, including five of the eight highest grossing cinemas in the UK and
Ireland.
- The Group listed on the Main Market on May 2nd 2007.
- As at 27 December 2007 the number of shares in issue was 141.7m.
This information is provided by RNS
The company news service from the London Stock Exchange
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