Proof the recession is still hurting Britons: the popcorn index of discretionary spending says so.
Movie giant Cineworld today blamed a dramatic slowdown in revenue growth on the “challenging consumer environment”. It saw a 2.1% fall in cinema-goers’ spending at the popcorn counter in the 26 weeks to July — down from almost 4% growth in the first half of the year.
The impact of the global downturn was evident elsewhere, too: screen advertising revenues were down 10.9%, and growth in box office takings slumped from 8% in the five months to May to 4.1% when the last two months’ takings were included.
Cineworld said that was partly because brands focused on the Euro 2012 football championships — and building on that experience, admitted that the “timing of the Olympics is expected to add to the challenges of a tough third quarter.”
Overall revenues during the 26 weeks rose 1.1%, mainly because Cineworld took more cash at the box office — not because more people visited but because average ticket prices went up.
The movie group is pinning its hopes on a strong slew of 3D films in the second half, including The Amazing Spiderman, Ice Age 4 and The Hobbit, plus expected blockbusters such as the concluding film of the Twilight series and the next Bond title Skyfall, to help it hit City expectations. Shares fell 2.5p to 207p.
