Cineworld shares soar as US acquisition drives profits
THE boss of Cineworld admitted bumper profits could have been even better had it not been for the delayed release of Incredibles 2.
The Pixar film, which smashed US box office records for the animation company, was originally timetabled for a UK release in June. But a one-month delay meant it was not included in Cineworld’s results for the six months to June.
Mooky Greidinger, Cineworld chief executive, told The Daily Telegraph: “For some reason they [Pixar] decided not to open it [Incredibles 2] during the World Cup.”
Incredibles 2 took £9.5m across all UK cinemas on its opening weekend. Its first Friday was the second best for an animated movie behind Toy Story 3. Cineworld’s shares surged 10.7pc to 306p as it posted half-year profit before tax of $160.2m (£124.4m) on revenue of $1.9bn.
The figures dwarfed prior year comparatives, and included the returns from Cineworld’s £4.5bn acquisition of US rival Regal Entertainment in February. The deal created the world’s second largest cinema company.
The US division was a standout performer for Cineworld with revenue swelling by 14.3pc on pro forma basis. UK and Ireland sales were 2.5pc higher.
Investec analysts said: “US box office revenue growth outperformed the market [of 9.6pc], and the UK traded well despite the impact of the football World Cup and warm weather.”
Tom Stevenson, an investment director at Fidelity Personal Investing, said: “Cineworld’s purchase of Regal Entertainment in America in February could not have come at a better time.
“The buoyant US movie market offset a difficult first half in the UK and Europe where hot weather and the World Cup reduced the attraction of a night at the cinema.”