DJ Cineworld Group plc Trading Statement
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