UK cinema chain Everyman Media Group, the fourth largest cinema business in the UK by number of venues, saw an increase of 70% in admissions in 2022 compared to 2021, as posted today (April 12) in its financial results for the year ending December 29 2022.
Across the UK, admissions hit 3.4m, compared to 2m in 2021 (venues were closed from the beginning of 2021 until May 17). Everyman’s admissions have risen faster than for UK cinemas overall, with the UK Cinema Association (UKCA) reporting admissions were 117.3m in 2022, compared to 74m in 2021 – an increase of 59%.
The positivity of the report presents a contrast to beleaguered operator Cineworld, that last week struck a deal to restructure its debt in an attempt to emerge from bankruptcy and cut debt by around $4.53bn (£3.5bn).
Everyman’s revenue hit £78.8m, compared to £49m in 2021 – a hike of 61%. Total box office revenue across the UK and Ireland soared to £979m in 2022, an increase of 64% from 2021.
The average ticket price was up to £11.29 (2.6% increase on £11 in 2021) – that’s 47% above the average in UK and Ireland, which is £7.66, according to the Film Distributors’ Association Yearbook for 2023. Food and beverage spend per head was also up, at £9.37 ( 3% increase on £9.07 in 2021).
It saw an operating profit of £402,000, compared to a £2.2m operating loss in 2021. After tax, the group made a loss of £3.5m, compared to £5.4m in 2021.
Everyman’s market share, however, was maintained at 4.5%.
Looking ahead
Two cinemas opened in April and September of last year, in Edinburgh and Egham, taking the group’s total to 130 screens across 38 venues. The report stated that “both venues are trading in line with expectations”. Six venues have been confirmed to open in 2023, in Durham, Northallerton, Salisbury, Plymouth and Marlow. There are also plans to open a total of six new venues in 2024 and 2025, with Cambridge and Stratford in London under contract for next year.
Everyman reported a healthy outlook for 2023: “Admissions in 2023 are expected to benefit from an increased number of wide releases, commitment to the theatrical window from distributors and new investment from streamers.”
It stated it had: “Successfully navigated inflationary headwinds in FY22”, and “We anticipate continued financial improvement from higher admissions, strong management of costs and new site openings, despite the current difficult macroeconomic environment and its impact on consumer spends.”
The report also noted benefits were felt from an increased commitment by streamers to theatrical release patterns: “Whilst last year the market saw a reduction in blockbusters due to production delays, the signs of recovery are clear with audiences coming back to enjoy a broader range of titles. We expect the number of larger releases to return to near pre-pandemic levels in 2023.
“The diversity of content was bolstered by streamers demonstrating a further commitment to cinema, moving away from day-and-date releases, and increasingly seeing the value in original content for theatrical release. Key examples of this were Netflix’s Knives Out: A Glass Onion Mystery and Apple’s Spirited. We continue to benefit from working cooperatively and creatively with streaming partners.”
Alex Scrimgeour, CEO of Everyman Media Group, said: “We were encouraged by strong growth in admissions in the year, marking a return to business as usual. Everyman remains a popular and affordable choice for consumers, combining great film, hospitality and atmosphere to provide an exceptional cinema experience.
”We opened two new venues in Edinburgh and Egham in 2022 and are excited to welcome audiences to new openings in Durham, Salisbury, Northallerton, Plymouth, Marlow and Bury St Edmunds in the second half of 2023. As a result of our strong performance in year, we are actively returning to an agenda of managed organic expansion. The Company is also assessing acquisition opportunities of existing cinemas which are suitable to be converted into Everyman venues.
”Supported by an increasingly strong pipeline of new releases, commitment to the theatrical window from studios and new investment from streamers in films for theatrical release, we view our prospects with increasing confidence. Moving through 2023 and beyond, the Everyman proposition feels as relevant as ever.”
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