- Chain cashes in as film fans still flock to see Bridget Jones and Downton Abbey
Trips to the cinema have become more expensive because of last year’s Budget, according to one of the country’s leading chains.
Everyman said ticket and food prices have gone up as a ‘direct consequence’ of higher staffing costs following Labour’s national insurance tax raid on firms and an inflation-busting increase in the minimum wage.
But the firm, the UK’s largest cinema chain, said film fans continued to flock to its screens in the first half of the year to watch hits including Bridget Jones: Mad About The Boy, Mission: Impossible – The Final Reckoning, A Complete Unknown and Sinners.
Everyman said it is confident for the film slate for the rest of the year, pointing to major releases including Downton Abbey: The Grand Finale, Wicked: For Good, and Avatar: Fire And Ash.
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Bosses said the company is on track to meet financial targets this year despite ‘the hottest UK summer on record and a continuing challenging economic environment’.
Revenues jumped 21pc to £56.5m in the 26 weeks to July 3, compared with the same period a year earlier.
This was partly driven by a 15pc increase in admission numbers to 2.2m over the period.
The company said higher revenues were also driven by increases to ticket and food and drink prices.
The average ticket price increased by 6pc to £12.46 for the half-year, which the company said was driven by new openings in higher-priced locations, price increases to offset higher costs and an increase in the number of blockbuster releases, which have higher prices.
Meanwhile, average food and beverage spend per customer rose by 5.9pc to £11.09 on the back of menu investment, new venues and price changes to ‘mitigate cost increases, including rises in the national living wage and national insurance’.
Chief executive Alex Scrimgeour said: ‘Like all other businesses in the hospitality sector we have had to put some price measures through.
‘We have tried to keep those in line with inflation as much as possible where we can, while keeping in mind the consumer environment and not pushing too hard on price.
‘It is a direct consequence of the increases in costs placed on the sector, which has been disproportionately impacted by higher labour costs.’
