broker-spotlightl
Peel Hunt is keen on Cineworld (LON:CNE) after today’s full year figures, “We don’t believe the business has ever been in better shape to maximise the opportunity presented by a strong film slate.
“While there may be some share price consolidation in the short-term, longer-term we still see room for outperformance. Buy.”
N+1 Singer also kept its ‘Buy’ rating on the cinema group and upped its target price to 505p.
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Cineworld hits record admissions due to the "Fifty Shades of Grey" effect.
By Jonathan Jones
March 12 2015, 10:31am
Admissions have hit record levels thanks to the release in February of Fifty Shades,
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Cinema chain Cineworld (LON:CINE) hailed the “Fifty Shades of Grey” effect as it forecast 2015 would be another good year.
Admissions have hit record levels thanks to the release in February of Fifty Shades, a mums’ favourite about a bondage-based relationship between a young couple.
Mooky Greidinger, chief executive, also pointed to a strong schedule of new releases later in the year with popular franchises 'The Hunger Games', 'James Bond' and 'Star Wars' all set to release new films.
Profits in 2014 doubled to £67.3mln after the boost of buying competitor Cinema City. Revenues rose on a pro-forma basis by 1.7% to £619mln with box office sales of £400mln.
The dividend went up by a third to 13.5p with earnings per share rising 58% to 21.9p.
"We are pleased to announce solid results for the year following the successful combination of Cineworld and Cinema City,” said Greidinger.
Broker Peel Hunt said: "We don’t believe the business has ever been in better shape."
Broker N+1 Singer upped its share price target on the firm by 35p to 505p following the results.
Shares in the company rose 5% to 468p.
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Blockbuster films such as 'The Lego Movie' help multiplex owner Cineworld to double annual profits
By Ben Griffiths for the Daily Mail
Published: 12:22, 12 March 2015 | Updated: 12:22, 12 March 2015
Multiplex owner Cineworld has doubled annual pretax profits thanks to blockbuster films including The Lego Movie, Inbetweeners 2 and Dawn of the Planet of the Apes, which together grossed £100.4million in 12 months.
The company, which completed its acquisition of the theatre business of Poland’s Cinema City International during the year, reported pretax earnings of £67.3.million for 2014, up from £30.9million a year earlier, on sales of £619.4million.
Cineworld is expecting another bumper year in 2015 with big releases to include the new James Bond film Spectre, the final Hunger Games release and the latest Star Wars film ‘Star Wars: Episode VII’.
Movie magic: Blockbuster films including The Lego Movie (pictured), Inbetweeners 2 and Dawn of the Planet of the Apes, together grossed £100.4million in 12 months
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Movie magic: Blockbuster films including The Lego Movie (pictured), Inbetweeners 2 and Dawn of the Planet of the Apes, together grossed £100.4million in 12 months
13 Feb 2014, France --- A model of the character Yoda from the Star Wars film series is seen during press day for the exhibition "Star Wars Identities" at the "Cite du Cinema" movie studios in Saint-Denis, near Paris, February 13, 2014. The exhibition, which explores the theme where visitors identify themselves with a Star Wars character, will run from February 15, 2014 to June 30, 2014. REUTERS/Benoit Tessier (FRANCE - Tags: ENTERTAINMENT SOCIETY) --- Image by © BENOIT TESSIER/Reuters/Corbis
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The release of much-anticipated ‘Fifth Shades of Grey’ in February has also smashed expectations, and helped achieve record levels of weekend admissions.
Chief executive Mooky Greidinger - an industry veteran who took over from Steve Weiner - said: ‘Overall the strength of the film line up in the current year, coupled with our good pipeline of new sites across our international estate, gives us confidence that we are on track with our plans for 2015.’
Cineworld is paying a final dividend of 9.7p, taking the full-year payout to 13.5p, up from 10.1p a year earlier
It's shares on the FTSE 250 index were up 26.2p to 474.3p in lunchtime trading.
By the end of the year Cineworld was operating 1,875 in 203 cinemas and nine different countries.
It is scheduled to open a further 504 screens in the next three years, including 328 in Central and Eastern Europe and 176 in the UK.
Retail revenues for sales of treats including soft drinks and popcorn leapt 51 per cent in 2014.