Proactive Investors - Run By Investors For Investors

Cineworld fails to provide surprise twist at the end

Bulls hoping for an earnings upgrade on the back of the Star Wars blockbuster were disappointed
Cineworld fails to provide surprise twist at the end
Cineworld cited strong performances from three blockbusters in the fourth quarter: “Spectre”; “Hunger Games: Mockingjay Part 2”; and “Star Wars: The Force Awakens”.

The force was with cinemas operator Cineworld (LON:CINE) in 2015, though perhaps not as much as the market hoped.

Total revenues for 2015 were up 12.3% year-on-year on a pro forma basis (adjusting for the February 2014 acquisition of Cinema City).

Box office takings were up 11.6%, while cinema goers gobbled up the jumbo-sized popcorn, overpriced candy-covered sweets and fizzy drinks and pushed retail sales 13.7% higher than the year before.

The group had previously indicated that in the first 46 weeks of 2015 Total revenues were 11.9% higher year-on-year.

The group said it expects profitability for the year just ended will be in line with market expectations when the numbers are finally totted up.

“While low end consensus could increase and we have already upgraded +8% in 2015, this may disappoint the bulls,” suggested broker Investec, and it seems to have called that right, as the shares were off 3.7% at 517.5p in mid-morning trade.

Cineworld cited strong performances from three blockbusters in the fourth quarter: “Spectre”; “Hunger Games: Mockingjay Part 2”; and “Star Wars: The Force Awakens”.

Investec said the numbers suggested the Star Wars performed well in the period.

For 2016, the group reckons "Fantastic Beasts And Where To Find Them", "The BFG", "Star Wars: Rogue One", "Finding Dory" and "Captain America: Civil War" will be the big money-spinners.

The company said it is continuing with its strategic expansion and renovation plans during 2016 when there are 13 new sites scheduled to open, which was one less than Investec had been expecting.

View full CINE profile View Profile

Cineworld Group plc Timeline

Related Articles

mobile phone
January 22 2018
Tremor is already in profit a year ahead of expectations and is a blueprint for similar acquisitions in the future.
October 24 2017
After being rejected by several publishers, Bloomsbury was the one which decided to take a punt on Harry, and what a magical decision it proved to be
Media junkie
February 13 2018
In modern parlance, Ebiquity is making a pivot towards becoming the "world's leading tech-enabled marketing and media analytics consultancy"

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use