14th Mar 2019 08:25
LONDON (Alliance News) - Cineworld Group PLC on Thursday reported more than doubled profit after revenue spiked significantly driven by the acquisition of Regal Entertainment Group in the US, completed in February 2018.
For 2018, the cinema operator reported annual profit of USD349.0 million, up from USD155.1 million a year ago.
Revenue jumped to USD4.12 billion from USD1.15 billion a year prior as admissions rose to 272.6 million from 103.8 million.
On a proforma basis, reflecting the company's US performance if Regal been consolidated for the whole of 2018 and 2017, revenue increased 7.2%.
"2018 was a transformative year for Cineworld Group. The acquisition of Regal in February made us into a global operator and the second largest cinema chain in the world. By the end of 2018, the group was operating 9,518 screens in 790 sites across 10 countries. This significant achievement would have been difficult to imagine when we began operations in 1996," Chair Anthony Bloom said.
"Looking to 2019 and beyond, it is clear to me that it will be another exciting time for the group. Our well-diversified cinema estate, along with continued investment in the UK and Rest of the World circuits and our development plans for the US leave us well placed to take advantage of multiple opportunities to generate cashflow and grow earnings."
In the US the company generated revenue of USD3.52 billion, with UK and Ireland at USD675.5 million and Rest of the World USD471.5 million.
Cineworld upped its annual payout by 18% to 15 US cents per year after proposing a final 10.15 cents dividend.
Cineworld shares were trading up 5.4% at 304.60 pence each.
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