Cineworld profits boosted by Regal acquisition
Marvel films Black Panther and Avengers: Infinity War were the top draws last year.
Cineworld’s profits more than doubled last year after film-goers flocked to watch Black Panther and Avengers: Infinity War.
The group made a pre-tax profit of 349 million US dollars (£262.2 million) in 2018 compared with 155.1 million dollars (£116.5 million) a year earlier.
Revenue surged to 4.12 billion dollars (£3.1 billion) from 1.15 dollars (£864 million) thanks to record box office results in the US due to the £2.7 billion acquisition of rival Regal Entertainment.
Box office sales, which accounts for about 60% of revenue, increased to 2.5 billion dollars (£ billion) from 712.7 million dollars (£1.88 million).
Revenue in the US increased 8.6% to 3.53 billion dollars (£2.66 billion), while sales in the UK and Ireland business, which includes the Picturehouse brand, rose 3.3% to 697.7 million dollars (£525.3 million).
The combination with Regal has exceeded our expectations - we have incorporated the best of both companies by bringing together world-class talent, integrating best practice from both sides of the Atlantic, and deepened our understanding of the US market Mooky Greidinger, Cineworld CEO
Chief executive Mooky Greidinger said: “We are pleased to announce strong full-year results following the successful acquisition of Regal.
“We are well on our way to achieving the successful business integration following a strong performance and record box office results in the US.
“The combination with Regal has exceeded our expectations – we have incorporated the best of both companies by bringing together world-class talent, integrating best practice from both sides of the Atlantic, and deepened our understanding of the US market.
“Whilst the group has expanded significantly, our strategy and vision remain the same, to be ‘the best place to watch a movie’ by continually focusing on providing the best customer experience, maintaining technological leadership, expanding and upgrading the estate, and training and retaining highly motivated, experienced and loyal staff.”
He said there is a strong film slate for the remainder of the year which includes, Dumbo, Avengers: Endgame, Aladdin and Star Wars: Episode IX amongst others.
Trading for the current full year is in line with the company’s expectations.