Cineworld Group plc Trading Statement (8457T)

TIDMCINE

RNS Number : 8457T

Cineworld Group plc

11 January 2017

11 January 2017

CINEWORLD GROUP PLC

Trading Update

Cineworld Group plc (the "Group") announces the following trading update.

The Group achieved strong revenue growth of 12.6% for the year ended 31 December 2016, 8.3% on a constant currency basis. As a result, the Group's overall performance for the year ended 31 December 2016 is expected to be in line with current market expectations.

Constant currency revenue increases for 2016 were as follows:

 
                   Cineworld Group     UK & Ireland         ROW(2) 
                     % change vs. 
                    prior period(1) 
                                       % change vs.       % change vs. 
                                        prior period     prior period(1) 
----------------  -----------------  ---------------  ------------------ 
 
 Total revenues          8.3%              5.8%              12.6% 
----------------  -----------------  ---------------  ------------------ 
 Box Office              7.0%              3.7%              13.5% 
----------------  -----------------  ---------------  ------------------ 
 Retail                 12.7%              9.6%              18.0% 
----------------  -----------------  ---------------  ------------------ 
 Other Income            7.0%             11.2%              3.1% 
----------------  -----------------  ---------------  ------------------ 
 

(1) In the table above, to provide information on a comparable basis, the % change is presented on a constant currency basis. On the basis of actual exchange rates, the total revenues increased by an amount of 12.6% (compared to the 8.3% increase on a constant currency basis).

(2) ROW is defined as Rest of the World and includes Poland, Hungary, Israel, Romania, Czech Republic, Bulgaria and Slovakia.

The Group reached record admissions levels in 2016, passing the milestone of over 100 million people coming through our doors to watch a movie. Admissions increased in both the UK & Ireland and the ROW, with double digit growth taking place in the ROW. The top performing movies of the year were "Star Wars: Rogue One", "Fantastic Beasts and Where To Find Them" and "Bridget Jones's Baby", "The Jungle Book", "The Secret Life of Pets" and "Zootropolis". Local movies continued to be popular in the ROW, especially in Poland.

The increase in admissions, nature of the film mix and the expansion of retail offerings, (including seven new Starbucks outlets and three VIP sites) drove the 12.7% growth in retail revenues.

Other Income, which predominantly consists of advertising and distribution revenues, increased by 7.0%. The distribution revenue stream is largely dependent on the film slate. As the final quarter of 2015 was a strong comparative, which included "Spectre", "Star Wars: The Force Awakens" and "Hunger Games: Mockingjay Part 2", the overall growth achieved in Other Income reflects a solid performance.

The Group now operates 226 sites with 2,115 screens. This includes eight sites opened during 2016, four in the UK and four in the ROW, as well as the five Empire sites acquired in August 2016. This builds on the record number of 18 site openings in 2015. In addition, the Group continued its estate management programme with ten major refurbishments completed during 2016. Five smaller sites were closed.

The Group continued to invest in and offer the latest technology, ending 2016 with 27 4DX screens, 33 IMAX screens and 6 Superscreens. The first 4DX screen in London was opened at the Wandsworth site in December 2016, and has proved to be a format which is increasingly popular with our customers. The Group will continue with its strategic expansion and renovation plans during 2017 with 13 new sites scheduled to open, 6 in the UK and 7 in the ROW, and several major refurbishments.

There is an exciting film slate for 2017 which includes "Star Wars: Episode VIII", "Despicable Me 3", "Beauty and the Beast", "Justice League", "Paddington 2", "Fast and Furious 8", "Pirates of the Caribbean: Dead Men Tell No Tales", and "Dunkirk".

With a strong balance sheet the Group continues to look at potential investment and expansion opportunities, and expects to deliver further value to shareholders during the forthcoming year. The full year results will be announced on 9 March 2017.

Contacts

 
Cineworld Group plc              Bell Pottinger 
                      020 8987 
Dean Moore             5000      Elly Williamson  020 3772 2573 
                      020 8987 
Nisan Cohen            5000      Zara de Belder   020 3772 2573 
 

Notes to editors

About Cineworld Group plc

Cineworld Group plc was founded in 1995 and listed its shares on the London Stock Exchange in May 2007.

The company has grown through expansion and by acquisition to become one of the leading cinema groups in Europe with the number one or number two position by number of screens in each of its regions. Cineworld currently operates 2,115 screens across 226 sites in the UK, Ireland, Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 11, 2017 02:00 ET (07:00 GMT)