Cineworld sees admissions drop
The UK's largest cinema operator said higher ticket prices had offset a decline in admissions in the first half of its financial year.Cineworld, which has 79 cinemas and 811 screens, saw admissions fall 0.8% but box office revenues rose 4.1% in the 26 weeks to June 28 as it bumped up prices.
Other income - which includes cinema advertising and sale of 3D glasses - plunged 18.7%, while the cinema operator saw its market share dip to 24.7% from 24.9% in the period.
While the timing of the Olympics is expected to hit the business, Cineworld said a strong film schedule including The Amazing Spiderman, The Hobbit and the next instalment in the Batman franchise The Dark Knight Rises, should boost trade.
Shares in Cineworld were down nearly 1% following the update.
But Steve Liechti, analyst at Investec, said the shares were still worth buying as "history suggests cinema admissions are relatively defensive and more film slate driven".
Cineworld said the removal of booking fees and launch of a 10% discount for tickets booked online has boosted growth of its its online MyCineworld registrations.
Total retail revenue - such as refreshments and snacks - was 1.3% lower amid the challenging consumer environment, Cineworld said.
Within other income, screen advertising revenues were 10.9% lower, reflecting the general trend in the wider advertising market.
The group's plans to open a new seven-screen cinema in Aldershot, Hampshire, and the conversion of its digital projection estate by the end of the summer are on target.
But Steve Liechti, analyst at Investec, said the shares were still worth buying as "history suggests cinema admissions are relatively defensive and more film slate driven".
Cineworld said the removal of booking fees and launch of a 10% discount for tickets booked online has boosted growth of its its online MyCineworld registrations.
Total retail revenue - such as refreshments and snacks - was 1.3% lower amid the challenging consumer environment, Cineworld said.
Within other income, screen advertising revenues were 10.9% lower, reflecting the general trend in the wider advertising market.
The group's plans to open a new seven-screen cinema in Aldershot, Hampshire, and the conversion of its digital projection estate by the end of the summer are on target.
© 2013 Press Association