Sales Jump, Profits Dip at Central European Exhibitor Cinema City
Cinema City’s acquisition of Palace Cinemas helps boost revenue, but ticket sales fall by 12.6%.
COLOGNE, Germany – Revenue at Central European exhibitor group Cinema City jumped 11 percent to $268 million (€198 million) in the first nine months of this year, helped by the company’s $38 million acquisition of Palace Cinemas, which operates 15 multiplexes across Hungary, the Czech Republic and Slovakia. Cinema City’s net income, however, slipped 32 percent to $20 million (€14.8 million) as same theater sales dropped sharply. CEO Moshe J. Greidinger bemoaned the lack of a 3D blockbuster such as James Cameron’s Avatar for the decline, but was upbeat about future prospects.
“This year we’ve strongly progressed with digitalization of our circuit,” he said. “We now have over 65 percent of screens digitalized. By the end of 2011 we plan to be digital in 75 percent and in 2012 all screens of Cinema City will be digital.”
The largest cinema exhibitor in Central Europe and Israel, Cinema City operates 899 screens across 95 locations.