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A miserable summer with less cash in its pockets is forcing the great British public back into the cinemas. Cineworld, the UK's second-largest cinema chain, says it is benefiting from the rising numbers of cash-strapped Britons holidaying at home and seeking cheaper entertainment.
The company, which operates 74 cinemas with 770 screens, said that a strong release schedule, which included The Dark Knight and Mamma Mia!, had boosted attendance since June.
Steve Wiener, Cineworld's chief executive, said: “Cinema is less expensive than other leisure pursuits. Despite financial pressures, people still need to get out of the house and forget about their worries. We expect comedies and adventure films to do particularly well this year as we look for escapism.”
In the first half to June 26, box-office receipts rose 1percent to £89.6million, and pre-tax profits were £8.7 million, against a £1.1million loss in the same period in 2007.
The improved performance was achieved despite the relative absence of blockbuster films. Indiana Jones and the Kingdom of the Crystal Skull and Sex and the City were released at the tail end of Cineworld's first half, and The Dark Knight and Mamma Mia! at the start of the second half.
Mr Wiener said that these were a solid set of results, particularly when viewed against a backdrop of far fewer blockbuster films in the period and an increasingly challenging consumer environment.
Box-office takings in the first half were boosted by the average ticket price per admission rising 6 per cent to £4.34 and the average retail spend per person increasing to £1.73, from £1.64. The company said that new coffee and alcohol suppliers as well as more Ben & Jerry's outlets and the upgrade of several retail areas had driven the improvement.
Mr Wiener said that although there was a 4.8 per cent drop in admissions to 20.6 million in the first 26 weeks of the year, he was expecting a significant boost to cinema attendance in the second half because of strong releases and continuing economic concerns.
Releases include the James Bond film Quantum of Solace, High School Musical 3, Madagascar 2 and a remake of The Day the Earth Stood Still.
The resilience of the film market during the credit crunch can be seen in sales of DVDs. The British Video Association, which monitors the home entertainment market, recently said that DVD sales rose by 3.3 per cent in the first half of this year, compared with the same period a year ago.
According to Lavinia Carey, the association's director-general, DVDs have become less a luxury and more a necessity.
She said: “History has shown that in times of economic hardship, consumers find even more value in home entertainment. As video is one of the most cost-effective forms of entertainment, we would expect to see continued volume growth in our market as consumers tighten their belts.”
Holidays at home
- The Office for National Statistics reported a 1 per cent fall in the number of Britons going abroad during April to June
- Pontin's has said bookings are up 10 per cent on a year ago
- Bourne Leisure announced last month that its Butlins business enjoyed a 15per cent rise in bookings for July to September
- Travelodge, the hotel chain, has forecast a 30 per cent surge in sales at its 30 coastal hotels
- Center Parcs said that, despite the addition of 77 villas at its four villages, it is full this summer
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