Cineworld posts 11.3% rise in profit

Cineworld (LON:CINE) posted an 11.2% increase in revenue for their first half as they benefitted from a good film release schedule and cinema openings.

“During the first half of the year we traded well with a good film release schedule and in addition continued our expansion plans, by opening three new Cineworld cinemas in the U.K. (Swindon, Broughton and Silverburn, with 31 screens in total) and one Picturehouse (in East Dulwich with 3 screens)…we are on track to open a further 6 cinemas in the U.K.–with a total 47 screens, of which 5 will be Picturehouse screens, the company said.

The outlook for the second half of the year is also encouraging, Cineworld is highly impacted by external factors such as film releases and film trends and are looking forward to what H2 has in store.

The strong results have led to N+1 Singer reiterating their buy stance on Cineworld, analysts are targeting a price of 550p citing admissions growth as reason to be optimistic.

“There is a promising film release programme during the second half of the year which includes titles such as “Star Wars: Episode VII”, the final Hunger Games title “Hunger Games: Mockingjay Part 2” and the next James Bond film “Spectre”, the company said in there results.

Shares in Cineworld are up 48% over the last two years.

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