CINEWORLD GROUP plc interim results for 26 week period ended 30 June 2011

A strong finish to the first half with growth in revenues, EBITDA and market share

Cineworld Group plc (“Cineworld” or “the Group”) is pleased to announce its interim results for the 26 week period ended 30 June 2011. 

Financial

• Group revenue of £163.6m, up 1.0%  (2010: £162.0m);
• EBITDA1  £25.6m up 4.9% (2010: £24.4m);
• Operating profit at £13.0m after the impact of £3.2m of non-recurring and non-trade related costs (2010 operating profit: £14.8m);
• Reported EPS: 6.6p on a  proforma adjusted basis (2010: 6.8p)  and 3.6p on basic earnings (2010: 5.6p);
• Interim dividend of 3.6p per share up 5.9% (2010: 3.4p per share);
• Net debt reduced to £100.7m (June 2010: £115.5m);
• Successful refinancing of bank facility in March 2011 with a £170m facility over a 5 year term.

Operational

• Largest operator in the UK with a box office market share² of 26.4% (2010: 26.3%);
• UK/Ireland market share² increased during the period to 24.9% (2010: 24.2%);
• Box office receipts up 2.0% at £113.9m (2010: £111.7m);
• Admissions at 23.2m, up 2.2% (2010: 22.7m);
• Average ticket price at £4.91 per ticket (2010: £4.93);
• Average retail spend per person lower at £1.67 (2010: £1.71);

• Strong start to the second half of 2011, led by the success of Harry Potter: The Deathly Hallows Part 2.

Commenting on these results, Stephen Wiener, Chief Executive Officer of Cineworld Group plc, said:

“We are pleased to announce solid first half results where we achieved growth in both revenue and EBITDA despite a lower number of blockbuster and 3D film releases during the period. The resilient trading performance, together with a reduction in net debt, has resulted in the Group being in a sound financial position. Against this backdrop, we have again increased the interim dividend to our shareholders. 

The second half of the financial year has started strongly for the Group, with an excellent range of blockbusters and 3D films. The fourth quarter brings an exciting line up of releases with titles such as “Twilight Saga: Breaking Dawn Part 1”, “Mission Impossible: Ghost Protocol” and “Sherlock Holmes 2”, as well as a promising 3D film slate including “The Adventures of Tin Tin: Secret of the Unicorn” and “Puss in Boots”.  

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.“