TOP NEWS: Cineworld Profit Rises After Transformational Year

15th Mar 2018 09:23

LONDON (Alliance News) - Cinema operator Cineworld Group PLC on Thursday reported strong profit and revenue growth for 2017, with performance outside the UK & Ireland particularly positive.

On a statutory basis, Cineworld's 2017 pretax profit rose 23% to GBP120.5 million. The adjusted figure, which strips out various items, increased by 15% to GBP127.5 million from a figure of GBP111.4 million in 2016.

Revenue for 2017 was up by 12% at actual currency rates, or by 8% at constant currency, to GBP890.7 million from 2016's GBP797.8 million.

Cineworld increased its final dividend to 15.40p, which added to an interim dividend of 6.00p, takes the year's total to 21.40p, up from 19.00p the year before.

The results come two weeks after Cineworld completed its reverse takeover of US peer Regal Entertainment Group, paying USD23.00 per share, valuing Regal at USD3.6 billion, compared to Cineworld's December market capitalisation of GBP1.41 billion, when the deal was announced.

Cinema admissions during 2017 rose to 103.8 million compared to 100.3 million, with Box Office revenue in 2017 totalling GBP553.7 million, up 11% year-on-year at actual rates. Retail income rose 16% at actual rates to GBP220.4 million.

UK & Ireland revenue was up 6.2% to GBP524.5 million, with Box Office revenue up 6.5% and Retail rising 7.1%.

In the Rest of the World segment, which covers operations in central & eastern Europe and Israel, total revenue increased 21% at actual rates to GBP366.2 million. Box Office revenue rose 18% year-on-year at actual rates at Retail revenue by 29%.

Chairman Anthony Bloom said: "2017 was an exciting year for the Cineworld Group - the most momentous since its formation in 1995. For the financial year ended December 2017, the group's operations in the UK and ROW once again posted record results and then in December we announced the proposed acquisition of Regal Entertainment Group for USD3.4 billion which has successfully completed on 28 February 2018.

"It is particularly gratifying that the Regal acquisition received strong support from our shareholders - 87.3% of shareholders voted in favour of the acquisition at the general meeting on February 2 2018 and 96.3% followed their rights in the subsequent rights issue."

Cineworld shares were up 2.8% on Thursday at a price of 247.00p each.

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