Cineworld, the leading cinema operator in the UK, has reported a 9.9% rise in full-year pre-tax profit to £33.4m, despite food and drinks sales remaining flat during the year.
For the year to 29 December, the company said that food and drink , which represent its second largest source of revenue and 23% of total revenues, were flat at £81.6m.
Net retail spend per person softened in 2011 to £1.69 (2010: £1.73), which the group said reflected the competitive offers within its promotions.
It said that “our customers remained highly value conscious given the tough consumer environment and we successfully responded with a number of value initiatives”.
During the year, the group said it focused on the development of offers in order to widen the appeal of its bars and help “stimulate demand”
It also made progress in developing its coffee offer. At the end of the year it commenced work fitting out a new Starbucks coffee franchise trial at its Sheffield cinema to be opened by the end of March. If successful, it plans to roll out more franchises in the future.
Group revenue for the year increased 1.5% to £348m, with EBITDA up from £59m to £63m.
Box office revenue increased by 2.7% to £242.1m, while admissions were 2.3% higher than 2010 at 48.3 million.
The group said that the current year had started satisfactorily, and the business was well placed to maximize its opportunities.
The company said it expects to complete its digital roll out by the end of the summer.
Stephen Wiener, chief executive of Cineworld, said: “This year’s strong release schedule features many high profile sequels and takes into account the timing of the Olympics. We expect to complete our digital roll-out by the end of the summer, expand further with a new seven screen cinema in Aldershot in the fourth quarter and continue our investment in innovation to improve the customer experience. We will shortly be opening two additional IMAX screens, in Sheffield and Crawley, as well as trialing our first interactive D-Box seats, in Glasgow. These measures will help maintain our market-leading position and underpin growth in 2012 and beyond.”
