9th Aug 2018 08:37
LONDON (Alliance News) - Cineworld Group PLC reported Thursday a large increase in interim profit after its USD5.8 billion acquisition of American cinema chain Regal Entertainment Group.
In the six months ended June, the FTSE 250-listed cinema chain more than doubled its pretax profit to USD160.2 million from USD60.5 million the year before.
Cineworld's revenue quadrupled to USD1.86 billion from USD528.7 million. Admissions more than doubled to 123.0 million from 50.7 million.
The second largest cinema chain in the world, by number of screens, posted a 12% increase in UK revenue to USD353.7 million from USD317.0 million despite a 2.7% decrease in admissions to 25.6 million.
Cineworld's US business posted a 14% pro forma revenue increase to USD1.87 billion from USD1.64 billion. The pro forma basis includes the total six months to June of Regal despite Cineworld acquiring Regal four months ago.
US pro forma admissions increased 9.2% to 110.1 million from 100.8 million with box office revenue up 14% to USD1.15 billion from USD1.00 billion.
Cineworld is proposing a 35% increase to its interim dividend of 4.85 cents per share from 3.6 cent per share last year.
Looking ahead, the FTSE 250-listed cinema chain has started the second half well. July saw the release of Mission Impossible: Fallout, Mamma Mia! Here We Go Again and Equalizer 2.
Cineworld believes, based on the films being released in the second half, including the new Fantastic Beats and Mary Poppins, it will deliver a performance in line with expectations.
Chief Executive Officer Mooky Greidinger said: "We are pleased to announce strong first half results following the successful acquisition of the Regal Entertainment Group. Following the completion of the transaction, I have spent a lot a time in the United States getting to know our US business and implementing our strategy.
"I am very pleased with the Regal acquisition, we have already identified a significant number of opportunities. We are focused on delivering on the full potential of the combination through the strengths of our brands, focus on customer experience and investment in technology."
Shares in Cineworld were up 5.8% Thursday morning at 292.40 pence each.
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