| CATEGORY: SMALL CAPS NEWS SECTOR: TRAVEL & LEISURE |
Cineworld client seeks contract renegotiation |
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Tue 11 Dec 2007
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LONDON (SHARECAST) - Holders of shares in Cineworld were rattled by news that Carlton Screen Advertising wants to materially amend the terms of its existing contract with the multiplex cinema operator.
Cineworld said that it is negotiations with ITV subsidiary Carlton Screen Advertising (CSA) over the terms of a contract which is due to expire in January 2011. While talks are in progress Cineworld has agreed in principle to accept payments on a month by month basis. Should CSA fail to fulfil its contractual obligations at any stage, Cineworld will seek to enforce its rights.
Cineworld’s shares have been in steady decline after an initially positive reaction to its interim results announced in September. Profits came in at £5.1m in the six months to June compared with a loss of £6m. This year's results included an £8m gain on sale and leaseback deals. Revenues rose from £130.4m to £135.7m.
In October the group said it will be introducing 3D projection into its 72 digital auditoria to coincide with the release of the film Beowulf, which was released in the UK last month.
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