Simon Neville 

Cineworld hopes for James Bond boost

UK's biggest cinema chain sees profits jump thanks to box office smashes and believes Bond, The Hobbit and Twilight will keep crowds coming
  
  

Daniel Craig in the new James Bond film, Skyfall
Daniel Craig in the new James Bond film, Skyfall. Photograph: Allstar/UNITED ARTISTS/Sportsphoto Ltd./Allstar Photograph: Allstar/UNITED ARTISTS/Sportsphoto Ltd./Allstar

If the crowd's ecstatic reaction to the Queen's cameo alongside James Bond at the Olympics opening ceremony is anything to go by, the latest blockbuster featuring the fictitious spy will be a smash hit. Or, at least Cineworld hopes so.

The UK's biggest cinema chain, with 79 across the country, is pinning its hopes on the latest 007 instalment due out later this year as the company reported a 21.5% jump in half-year operating profits to £15.8m from £13m.

Box office admissions were down 0.8% in the six months to end of June, but revenues were up slightly to £165.4m from £163.6m thanks to an increase in ticket prices by 5% to an average of £5.15.

However, sales in popcorn and other snacks were down, with the average spend per customer dropping 2% to £1.65.

The profit boost has come courtesy of a strong roster of films including the Amazing Spiderman, Ice Age 4 and the final Batman instalment The Dark Knight Rises, while upcoming movies including The Hobbit, the third Twilight film and James Bond's Skyfall, are expected to maintain strong revenues, the company said.

Cineworld chief executive Stephen Wiener said: "The timing of these releases means that trade is expected to be strongest in the last two months of the year."

Box office revenues were spread across a number of films in the first-half, with the top 10 highest grossing films accounting for roughly 40% of Cineworld's total box office, while 3D films accounted for 15% of admissions, down from 17% in 2011 due to fewer 3D releases.

Wayne Brown, analyst at Cannacord Genuity, said:

These results are encouraging, as the first half of the year was up against tough comparatives and set against a period containing global sporting events and a weaker film slate when compared to last year.

Shares are up 7.3p, 3.2%, at 230.5p.

 

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