TIDMCINE
RNS Number : 0405Z
Cineworld Group plc
15 May 2019
FOR IMMEDIATE RELEASE
15 May 2019
CINEWORLD GROUP PLC
LONDON, 15 May 2019 - Cineworld Group plc ("the Group"), one of
the world's leading cinema groups, announces its trading update for
the period 1 January 2019 to 12 May 2019.
-- Group trading in line with our expectations
-- As anticipated, revenue performance softer during the period
due to the difference in timing of major releases
-- Opened four new sites during the period with Regal
refurbishment and integration programme progressing well
-- Record-breaking performance over past three weeks driven by
Avengers: Endgame with strong film slate scheduled for remainder of
the year
-- Unlimited scheme set to launch soon in the US
-- The Group is on track to perform in line with our expectations for the year
Pro-forma(1) revenue movements for the year were as follows:
Actual ($) Constant Currency(2) ($)
Group(1) US(1) UK & ROW(3) Group(1) US(1) UK & ROW(3)
Ireland Ireland
--------- -------- --------- ------- --------- -------- --------- -------
Total revenue (9.4%) (11.0%) (11.1%) 6.6% (9.3%) (11.0%) (12.1%) 9.1%
--------- -------- --------- ------- --------- -------- --------- -------
Box Office (13.1%) (15.3%) (13.6%) 6.0% (13.1%) (15.3%) (14.6%) 8.6%
--------- -------- --------- ------- --------- -------- --------- -------
Retail (6.2%) (7.7%) (6.8%) 7.5% (6.2%) (7.7%) (7.9%) 10.2%
--------- -------- --------- ------- --------- -------- --------- -------
Other Income 4.9% 6.0% (3.6%) 7.4% 4.9% 6.0% (4.7%) 9.1%
--------- -------- --------- ------- --------- -------- --------- -------
(1) Pro-forma results reflect the Group and US performance had
Regal been consolidated for the entirety of the period from 1
January 2018. For the purposes of percentage movements, the same
comparative period has been applied.
(2) Constant currency movements have been calculated by applying
the 2019 average exchange rates to the 2018 performance.
(3) ROW is defined as Rest of the World and includes Poland,
Romania, Hungary, Czech Republic, Bulgaria, Slovakia and
Israel.
As expected, the box office performance for the reported period
was slower than the comparative period in 2018 reflecting the
difference in the timing of major releases. The 2018 comparative
period included "Black Panther" and "Avengers: Infinity War", the
top grossing films of the year, as well as the carryover of "Star
Wars: The Last Jedi" and "Jumanji: Welcome to the Jungle" which
were released in late 2017.
Over the past three weeks, all markets have seen a record
performance driven by record-breaking "Avengers: Endgame" which has
grossed over $2.5bn globally to date.
A strong line up of films is expected for the remainder of the
first half, including "Pokémon Detective Pikachu", "Aladdin",
"Godzilla: King of the Monsters", "The Secret Life of Pets 2",
"X-Men: Dark Phoenix", "Men In Black: International" and "Toy Story
4".
During the period, as part of the Group's proactive approach to
estate management, four new sites (60 screens) were opened, one in
Bulgaria and three in the US including Essex, our new 14-screen
multiplex in the Lower East Side of Manhattan. Our selective site
closure programme continued and we closed six of the Group's sites
during the period, all in the US. This brings the total number of
sites in the Group as at 12 May 2019 to 788 with 9,503 screens.
The refurbishment and integration plans for Regal are
progressing well and management is reviewing further opportunities.
We have now signed over 30 agreements with landlords for several
strategic sites to be refurbished in the US.
Investment in the latest technology continues to be a key pillar
of the Group's strategy. During the period, the Group opened 9
ScreenX and 10 4DX across the estate. We also recently opened the
extension of our London cinema at The O2. It is now the largest
cinema in London with 19 screens and 4,500 seats and offers
ScreenX, 4DX, ViP and Superscreen formats making it one of the UK's
most technologically advanced cinemas.
The Group remains on track to deliver a full year performance in
line with our expectations. There is a strong film slate for the
second half of 2019 including "Spider-Man: Far From Home", "The
Lion King", "Fast & Furious Presents: Hobbs & Shaw", "It:
Chapter Two", "Joker", "Maleficent: Mistress of Evil", "Terminator:
Dark Fate", "Frozen 2", "Jumanji 3" and "Star Wars: The Rise of
Skywalker".
The Company is also pleased to announce the signing and
completion of a $286.3m sale and leaseback of 17 US cinemas. The
details of this transaction are provided in a separate announcement
released today.
Mooky Greidinger, Chief Executive Officer of Cineworld Group
plc, commented:
"The relatively slow start to the year in the first four months
has come as no surprise as the comparative period in 2018 was
extremely strong; Avengers Endgame was always set to be the
beginning of real strength in this year's slate. The record
breaking results of this latest Avengers movie prove the undisputed
power of the theatrical business and its popularity around the
globe.
Our strategy is unchanged and its implementation continues, with
an exciting refurbishment programme, further installation of new
technologies (an additional 40 4DX and 40 ScreenX auditoriums to be
up and running by December), and our pioneering Unlimited scheme
set to launch soon in the US.
We are confident that the strong film release line up in the
balance of the year, which includes highly commercial titles, such
as "Lion King", "Frozen 2", and the most anticipated movie of them
all "Star Wars: The Rise of Skywalker" will enable us to achieve
results which meet our expectations for the full year."
The interim results for the six months to 30 June 2019 will be
announced on Thursday 8 August 2019.
Cautionary note concerning forward looking statements
Certain statements in this announcement are forward looking and
so involve risk and uncertainty because they relate to events, and
depend upon circumstances that will occur in the future and
therefore results and developments can differ materially from those
anticipated. The forward looking statements reflect knowledge and
information available at the date of preparation of this
announcement and the Group undertakes no obligation to update these
forward-looking statements. Nothing in this announcement should be
construed as a profit forecast.
Contacts
Cineworld Group Powerscourt:
plc:
+44 (0) 20 8987 +44 (0)20 7250
Israel Greidinger 5000 Elly Williamson 1446
Nisan Cohen investors@cineworld.co.uk Celine MacDougall cineworld@powerscourt-group.com
Manuela Van Dessel Sam Austrums
Notes to editors
About Cineworld Group plc
Cineworld Group plc was founded in 1995 and listed its shares on
the London Stock Exchange in May 2007.
The company has grown through expansion and by acquisition to
become the second largest cinema chain worldwide, holding the
number one or number two position by number of screens in each of
its regions. Cineworld currently operates 9,503 screens across 788
sites in the US, UK, Ireland, Poland, the Czech Republic, Slovakia,
Hungary, Bulgaria, Romania and Israel.
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END
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