Cineworld Group plc (LON:CINE) today announced its interim results for the 6 month period ended 30 June 2018. The interim financial statements include the results of Regal Entertainment Group following the completion of its acquisition on the 28 February 2018. These results are presented in US dollars following the Group’s change in its presentational currency from pound sterling to remove the largest driver of currency translation volatility and provide greater transparency in the underlying trading performance of the Group.
Financial Highlights
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6 months ended 30 June 2018 |
Restated(1) 6 months ended 30 June 2017 |
v 2017 (statutory basis) |
Pro Forma(2) 6 months ended 30 June 2018 |
v 2017 (pro-forma (2) constant currency (3) basis) |
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Admissions |
123.0m |
50.7m |
142.6% |
158.9m |
+4.9% |
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Revenue |
$1,862.9m |
$528.7m |
+252.4% |
$2,456.0m |
+10.8% |
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Adjusted EBITDA(4) |
$413.6m |
$107.5m |
+284.7% |
$553.8m |
+14.1% |
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Profit before tax |
$160.2m |
$60.5m |
+164.8% |
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Adjusted profit before tax(5) |
$190.2 |
$64.6m |
+194.4% |
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Profit after tax |
$128.4m |
$50.6m |
+153.8% |
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Adjusted profit after tax(5) |
$152.4m |
$54.0m |
+182.2% |
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Diluted EPS |
11.1c |
8.2c |
+35.4% |
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Adjusted diluted EPS |
13.2c |
8.8c |
+50.0% |
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· Pro-forma(2) Admissions of 158.9m up 4.9%;
· Pro-forma(2) Revenue up 10.8%;
o US pro-forma(2) revenue growth of 14.3%;
o UK & Ireland constant currency(3) revenue growth of 2.5%; and,
o CEE & I(5) constant currency(3) revenue decline of 1.3%.
· Pro Forma Adjusted EBITDA(4) up +14.1%;
· Adjusted diluted EPS of 13.2 cents, reflecting a 50.0% increase from the prior year;
· Interim dividend 4.85 cents per share;
· Net debt of $3,650.0m and Adjusted Net debt(6) of $3,852.0m, which is equal to 3.8x Pro-forma LTM(7) Adjusted EBITDA.
Operational Highlights
· Following the acquisition of Regal, Cineworld is now the second largest cinema chain in the world (by number of screens);
· 6 new sites (56 screens) were opened during the period, taking the Group to 9,542 screens at 30 June 2018;
· 12 further sites, 111 screens, openings are planned for the second half of 2018;
· Significant new agreements were signed with IMAX (55 screens), 4DX (80 screens) and ScreenX (100 screens);
· Refurbishment programme progressing well across the estate, creating high quality, next generation cinemas with the latest audio and visual technology; and
· Integration plans for Regal are progressing well, further integration benefit opportunities being reviewed by management.
Anthony Bloom, Chairman of Cineworld Group plc, said:
“The first half of the current financial year was a successful and exciting time for the Group. It completed –
· the transformative $5.8 billion acquisition of the Regal Entertainment Group in the US;
· a successful $2.3 billion Rights Issue; and
· the renegotiation of the Group’s debt facilities on advantageous terms.
At the same time, the existing operations in the Group were expanded, refurbished where necessary in accordance with our strategic policy and performed successfully in line with our expectations. This was not a trivial challenge and on behalf of the Board, I would like to convey appreciation for the exceptional amount of hard work that this entailed on the part of the Group’s executive management, very competently led by our CEO and Deputy CEO.
Details of the strong financial performance are set out above and in the CEO’s Report, and these results together with the Board’s confidence for the Group’s prospects in the forthcoming 6 months, enabled it to declare an interim dividend for the period of 4.85 cents per share.
I look forward to the second six months with confidence and to once again being able to demonstrate the ability of the Group to enhance shareholder value.”
Commenting on these results, Mooky Greidinger, Chief Executive Officer of Cineworld Group plc, said:
“We are pleased to announce strong first half results following the successful acquisition of the Regal Entertainment Group. Following the completion of the transaction, I have spent a lot a time in the United States getting to know our US business and implementing our strategy. I am very pleased with the Regal acquisition, we have already identified a significant number of opportunities. We are focused on delivering on the full potential of the combination through the strengths of our brands, focus on customer experience and investment in technology.
The second half of 2018 has started well with the release in July of “Mission Impossible: Fallout”, “Mamma Mia! Here We Go Again” and “Equalizer 2”, as well as the UK and CEE & I release of “Incredibles 2”. Still to come in 2018 there is “Fantastic Beasts: The Crimes of Grindelwald”, “Venom”, “Aquaman” and “Mary Poppins Returns” and many more. Based on the film slate in the second half and our first half results, we remain confident of delivering a performance for the year as a whole in line with management’s expectations.”
