Cineworld, the UK’s leading commercial property cinema chain, has reported a 9.9 per cent growth in profits after the box office success of films including The Inbetweeners, The King’s Speech, and the final instalment of the Harry Potter franchise.
However the company also highlighted pressures on customers as it reported a rise in midweek discounts, reduced spending on drinks and snacks and falling interest in pricier 3D screenings.
Cinema chain Cineworld, which is introducing vibrating seats to some of its commercial property cinemas this month as part of a new “4D” experience, said pre-tax profits increased 9.9 per cent to £33.4m in the year to 29 December 2011 as sales edged up 1.5 per cent to £348m. However box office sales growth was counterbalanced by a fall in the net retail spend per person to £1.69 from £1.73, as cash-strapped customers thought twice about buying popcorn, sweets and drinks to accompany the movie.
The company’s subscription programme, which allows customers to watch as many movies as they want for a fixed price, contributed to over 16 per cent of total box office takings.
The commercial property company said the increase in profits was a testament to “the continuing appeal of cinema even in difficult economic times”; echoing industry reports suggesting people have been choosing to go to the cinema as a relatively cheap night out.
Turning to the outlook, the company added: “The current financial year has started satisfactory with a reasonable level of business carrying over from the Christmas period with the main films being Mission Impossible: Ghost Protocol, Sherlock Holmes: A Game of Shadows and The Girl with the Dragon Tattoo. 
“The performances of films released so far this year such as The Artist, Iron Lady and War Horse, whilst receiving critical acclaim and being in line with the internal expectations, have been lower than the same period last year, which benefitted from the unexpected success of the King’s Speech.”
Cineworld, which has 811 screens in 79 cinemas, said it would pilot its first interactive D-box seats, which shake and move according to the action in the movie, at its Glasgow commercial property venue.
With a box office market share of 24.6 in the UK and Ireland, the commercial property group has experimented with new set-ups including super-size IMAX screens.
The cinema chain is looking for new locations to expand its high-class cinema concept called The Screening Rooms, recently tested in Gloucestershire, Cheltenham that offers an exclusive bar and larger, more comfortable seats.
Looking into the future, Cineworld hopes blockbusters such as The Amazing Spiderman, The Dark Knight Rises and Lord of the Rings prequel The Hobbit, will pull in an adequate amount of customers to counterbalance the loss of trade to the upcoming major sporting events.
Anthony Bloom, Cineworld chairman, said: “We have made a sound start to the new financial year and while the forthcoming European football championship and London Olympics present further challenges, there is a strong line-up of films to support the rest of the year.”
The company said it remained ‘committed’ to the development in 2012 after opening a new seven-screen commercial property cinema in Leigh, in Greater Manchester.
Cineworld has started work on a new seven-screen commercial property cinema in Aldershot, Hampshire, which should open in the fourth quarter of the year, while ten further development sites have been signed.
The transformation of all its screens to a digital format, which allows the group to show live events such as sport, opera and concerts as well as films, is projected to be completed this summer.
