Cineworld set to be a winner despite World Cup dent
CINEWORLD is expected to report that its first-half pre-tax profits have surged 15 per cent to £21.7 million this week, despite the World Cup denting its takings.
The company's revenues are also forecast to rise 33 per cent to £268 million for the six months to June 30, helped by the acquisition of Cinema City International (CCI) in eastern Europe and boosted by the popularity of blockbusters such as The Lego Movie.
In its July update, Cineworld said that audience numbers in the UK and Ireland had fallen as fans opted to watch the World Cup in Brazil instead.
N+1 Singer analyst Sahill Shan said: "It remains to be seen if management will reinforce confidence around the full-year numbers, despite the likelihood of a poor July. Any trading concerns should not detract from enhanced growth prospects."
Shan believes that Cineworld is well placed to reap the rewards of the CCI acquisition by capitalising on "underpenetrated" Eastern European markets. CCI has 100 cinemas in Poland, Hungary, Bulgaria, Israel and Hungary and Cineworld has high hopes for summer releases, such as Transformers: Age Of Extinction and Guardians Of The Galaxy.
The Cineworld group, which also owns Picturehouse cinemas, now boasts 1,852 screens across 201 sites in the UK and Europe.
