Kiwis still love theatre-movie experience
New Zealand moviegoers are still flocking to Event Cinemas for international blockbusters such as Star Wars and homegrown movies such as Hunt for the Wilderpeople.
While some cinemas are slashing ticket prices to attract consumers, Event Cinemas has not seen a decline in patronage and its profit has increased by almost A$2 million (NZ$2.08 million).
The Australian-owned cinema, which a Stuff survey showed as one of the more expensive theatres to catch a flick, has recorded a profit for the year ending June 2016.
Event Hospitality & Entertainment recorded a net profit of A$130.2m - an increase of 19.6 per cent on last year.
The company has 19 cinema locations in New Zealand, with a total of 132 screens and is currently ranked the eleventh largest cinema group globally.
In June, Event bought the Downtown Cinemas business, which has 15 cinema screens across three locations in Palmerston North, Havelock North and Paraparaumu.
Event Group managing director David Seargeant said each of its major businesses contributed to the improved profit.
The cinema business was also boosted by a strong film line-up that included Star Wars: The Force Awakens, the surprise hit Deadpool and the Bond film Spectre, he said.
Its Kiwi cinemas brought in a profit before interest and tax of A$10,508,000, an increase of 27 per cent over the previous year.
The top titles included Star Wars: The Force Awakens (NZ$14.6m), Hunt for the Wilderpeople (NZ$11.6m), Spectre (NZ$5.9m); The Hunger Games: Mockingjay Part 2 (NZ$5.1m) and The Jungle Book (NZ$5.m).
Box office revenues for Event’s top five earners brought in a combined total of NZ$42.2m this financial year, compared to NZ$34.8m in 2015.
Event’s financial report says the improved result was mainly from improved merchandising revenue and cost saving initiatives.
‘‘Similar to the Australian circuit, the New Zealand circuit continues to pursue market share, particularly through the Cinebuzz loyalty program.’’
While Event had no control over the general audience appeal of available films, it would provide consumers with a ‘‘superior experience’’.
It also planned to boost revenue from expanding its number of cinemas including bigger screens, refurbishing existing cinemas and improving its food and drink offering.