Virgin Cinemas has unveiled plans to build another 20 cinemas in the UK over the next three years. The announcement was made as Virgin Cinemas posted a 90% increase in net operating profits for the year ending December 1996. In the first full year of trading under Virgin’s ownership, the company has pushed profits from 1995’s figure of £7m to £13.5m in 1996.
According to Virgin, this rise in profits has been generated solely by the 26 multiplex sites retained by the company following the sale of 90 traditional cinemas to the ABC chain in May 1996.
Increased capital investment – from £11.7m in 1996 to £34.5m in 1997 – will be spent on the acquisition of another 20 cinemas over the next three years as well as the refurbishment of existing cinemas.
In the last 12 months, Virgin Cinemas has opened 10 new multiplex sites in the UK with another three purchases to be announced shortly. In 1997, Virgin Cinemas will be opening new multiplexes at Aberdeen, Newport and Boldon in Tyne & Wear.
In addition to the Virgin shareholding, Texas Pacific Group, Colony Capital and Hotel Property Group are equity investors in Virgin Cinemas.
EGi News 25/03/97
