Resorts World cinema vital to Cineworld growth says film group
A PURPOSE-BUILT IMAX cinema experience at the new £150m Resorts World Birmingham entertainment complex is set to drive growth for cinema group Cineworld.
The new 11-screen facility is set to open at the mixed use hotel, leisure and retail development, next to the NEC, later this summer.
The cinema is a sister project to an 11-screen multiplex which opened at Telford’s new Southwater development last August.
The importance of the twin projects to the cinema group’s future success was outlined by Cineworld in its annual results.
The group is pioneering the use of 4DX technology within its estate and has installed the system at an outlet in Milton Keynes.
4DX enhances the cinema-going experience for the audience by augmenting a film presentation with special effects such as seat motion, wind, rain, fog, lights, and scents along with the standard video and audio.
“In addition to the introduction of 4DX, Cineworld Cinemas has continued to expand the IMAX format across a selection of our sites,” it said in its results statement.
“The IMAX screens opened during 2013 have performed well during the current year and Cineworld Cinemas operates the nine IMAX screens successfully. During the first half of 2014 we opened a further three IMAX screens in existing sites (Stevenage, Ashton-under-Lyne and Castleford) which were followed by a further two in the second half of the year (Cheltenham and Chichester).
“Our 15th IMAX was opened in our new cinema in Telford in August 2014. A further two IMAX screens will be included in new sites scheduled for opening in 2015 (Broughton and Solihull NEC), with more in the pipeline. (Subsidiary) Cinema City successfully operates 10 IMAX screens and is planning to open a further two during 2015.”
The group said the developments underlined one of Cineworld’s key strategic priorities, that of expansion.
“We have the financial capability, through the cash generative nature of our business and our debt facility, to pursue such opportunities,” it said.
“Our strong financial position and our good track record of driving high footfalls through our cinemas make us an attractive partner for property developers. We have 23 further development sites contractually scheduled to open in the next three years, 10 of which are scheduled for opening in 2015 and are currently under construction.
“The group believes there is significant potential for growth in cinema admissions by opening new cinemas in under-screened locations and is looking to capitalise on this opportunity.”
The group’s latest set of full year results which show revenue grew 52.5% to £619.4m for the year ended December 31, 2014 (2013: £406.1m) with pre-tax profit rising almost 118% to £67.3m (2013: £30.9m).
It said a strong mix of summer blockbusters, kicking off with the Avengers sequel, ‘Age of Ultron’ together with new Bond film ‘Spectre’, the fourth and final Hunger Games movie ‘The Hunger Games: Mockingjay Part 2’ and the latest Star Wars film ‘Star Wars: Episode VII’, promised another strong performance for 2015.
