Odeon Cinemas Owner UCI Faces Increasing Pretax Losses Despite Paul Mescal Boost

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ago 18 hours

Odeon Cinemas Owner UCI Faces Increasing Pretax Losses Despite Paul Mescal Boost

Despite a boost from the film “Kneecap” and the anticipated release of “Gladiator II,” the owner of Odeon Cinemas, UCI Cinemas, reported increased pretax losses in its financial results for 2024. The Irish company recorded a pretax loss of €8.06 million, a significant rise from €4.75 million in 2023. This uptick in losses comes even as the company experienced a slight revenue increase.

Financial Performance Overview

UCI Cinemas saw its turnover rise to €30 million, up from €29.66 million the previous year. The cinema operator, which is one of the largest in Ireland, attributes its revenue primarily to ticket sales, contributing over 54% to its overall income. Retail sales, including concessions, accounted for another 38%. Other revenue streams, such as pre-film advertising, filled the remaining gap.

Rising Costs and Losses

Despite the revenue growth, UCI Cinemas faced escalating operational challenges. Distribution costs surged by €2.7 million, moving from €23.14 million to €25.84 million. This was compounded by a higher operating loss of €4.8 million, up from €2.8 million the previous year. Interest payments rose by €900,000, now totaling just over €2.5 million. Additionally, foreign exchange losses doubled to €722,000.

Audience Trends and Market Dynamics

UCI Cinemas reported a cautious growth in cinema audiences, rising from 11.5 million in 2023 to 11.8 million, reflecting an increase of just 300,000. This growth has slowed compared to the previous year’s 800,000 increase. Attendance figures remain significantly below pre-Covid levels, where attendance surpassed 15 million annually in the 2010s, according to Screen Ireland data.

Average Ticket Price: Decreased from €8.90 in 2023 to €8.24.
Average Spend on Food and Beverages: Dropped to €5.77, down by 13 cents.
Staff Count: Remained stable, with a slight decrease to 321 employees.

Challenges and Future Outlook

The cinema industry has faced setbacks due to external factors, including the Writers Guild strikes that delayed film releases. UCI acknowledges that declining attendance poses the biggest risk to its operations. To combat this trend, the group emphasizes enhancing moviegoer experiences and driving customer loyalty.

Since its acquisition by AMC in late November 2016 for €1.2 billion, UCI Cinemas has focused on maintaining its position as a leading cinema operator across Europe. While the current situation raises concerns, the company remains committed to improving performance amid challenging market conditions.