What Is Cineworld's Profit?

In 2014 Cineworld accounted for 82.9 million admissions and had revenues of £619.4 million, in 2015 the company had a revenue of £705.8 million with a net income of £81.3 million (“Company overview”, 2016). These stats imply that Cineworld is growing in health even in the current economic climate, which is presented in this table (see appendix 1 & 3). Having said this, with the unpredictability of the economy anything can happen. In the first half of 2016, the company saw profits decline by 35% of which the company blames on fluctuation in the currency market (Megaw, 2016). Currency movements cost the company £6.1 million during this period, compared to a £8.9 million exchange rate gain in the same period the year before. Currency fluctuations …show more content…
Having said this, 2015 was a particular good year for the film industry with releases such as: Star Wars, Jurassic World, The Avengers and Inside out (Yeomans, 2015). All of which were box office hits, so it is comprehendible why profits would have dropped in the following year. The company’s health is not just dependant on customers buying tickets for films, other incomes from retail and screen advertising are significant additional sources of income for cinema chains. The most popular retail stand items are popcorn and soft drinks however there seems to be a growing demand for a wider range of products, such as branded coffee outlets, the Enfield cinema branch has its own ‘Starbucks’ coffee which is sure to attract more customers. In addition, 2017 looks bright in terms of big films being released which include: Star Wars: Episode VIII, Thor and Blade runner to name a few (Radio Times staff, 2016). The more popular the films released the bigger the profits for Cineworld. With these various different means of acquiring wealth it ensures Cineworld remain a healthy