Cineworld PLC reports growing box office revenue

The increased revenue was partially offset by falling screen advertising revenue, which left the group with a 'slight' increase in profits, and falling EBITDA margins from 17.7 to 16.7 pct.

Commenting on these results, Stephen Wiener, CEO of the Group said:

"Cineworld has delivered an oustanding set of financial results this year. Going to the cinema remains not only one of the most enjoyable forms of entertainment in the UK, but also one of the best value".

"The excellent film slate in 2009, combined with our early investment in 3D, has contributed to an increase in our box office market share, enabling us to grow adjusted EPS by 11 pct and propose the first full year increase in our dividend since IPO".

However, Wiener also warned of increasing prices as the 'cost of doing business keeps going up'.

Cineworld PLC has invested early in 3D technology, and hopes the 'premium' on the films admission price will enable them to grow revenue.

Shares in the group were largely unchanged since announcing results on Thursday.

"The strong end to 2009 has continued into 2010 and this is not just down to the Avatar effect but Alice in Wonderland 3D is on track to be one of the highest grossing movies in 2010." said Altium analyst, Greg Feehely, "The strength of admissions to 3D movies is proving to be more popular than we had initially thought."