Smurfs 2 and The Wolverine tipped to help Cineworld
Analysts are expecting a “strong” first-half performance from the chain, which has 80 sites in the UK, including seven in Scotland.
A trading update last month revealed that Cineworld’s market share had climbed by 0.5 percentage points to 25.2 per cent.
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Hide AdThe rise is expected to trigger a 21.9 per cent year-on-year increase in revenues to £201.6 million, with pre-tax profits forecast to climb to £17.5m from £12.6m.
Like-for-like sales – excluding the takeover of the Picturehouse chain – are predicted to rise by 10.5 per cent, although the figure will be flattered by a “weak” 1 per cent increase last year.
The City is expecting even more from Cineworld during its current trading quarter.
N+1 Singer analyst Sahill Shan said: “The hot July will inevitably have impacted trading, especially during the busy weekend period. However, the only major movie of note released in the period has been Despicable Me 2, with the slate much stronger for August – Monsters University, The Lone Ranger, The Wolverine and Smurfs 2 to name a few.
“These releases coincide with the school holidays and a weak comparative owing to the Olympics. Overall, so long as the weather remains variable, third-quarter trading should not disappoint.”
Disney last week warned it stands to lose £122m on The Lone Ranger after it flopped in the United States.