Flat quarter for Reading cinemas in NZ

Los Angeles-based Reading International today reported static revenue from its New Zealand cinema operations in the March quarter but two New Zealand films were among its three top box office hits.

The multiplex cinema owner and operator said revenue from continuing operations increased 1.6 per cent to US$25.9 million ($42 million) in the three months ended March 31 compared with the same period last year.

Its cinema revenue increase of US$600,000 was predominantly due to Australia (US$1m higher than last year) offset by lower revenues in the United States and a "flat New Zealand".

The top three grossing films in Reading's circuit worldwide were Walk the Line and two New Zealand-based productions - The Chronicles of Narnia: The Lion, The Witch and The Wardrobe, and King Kong. Between them they accounted for about 25 per cent of Reading's box office revenue of US$22.5m in the quarter.

The company reported a net loss of US$3.2m for the quarter, compared with a net loss of US$2.4 million in the 2005 quarter. Its earnings before interest, tax, depreciation and amortisation of US$2.2m for the 2006 quarter were US$123,000 lower than the 2005 quarter.

The depreciation of the New Zealand and Australian dollars against the US dollar had a negative impact on the latest result.

Reading International's main business is developing, owning and operating multiplex cinemas in the US, Australia and New Zealand, as well as entertainment-themed retail centres in Australia and New Zealand.

It operates in New Zealand under the Reading, Rialto and Berkeley cinema brands.

About 73 per cent of its assets of US$242.2m are in Australia and New Zealand.

It also reported today that on April 1 it bought the 50 per cent it did not already own of the Palms Cinema in Christchurch for $4.1m. The eight-screen, leasehold cinema had previously been included in the company's Berkeley Cinemas joint venture investment and was not previously consolidated for accounting purposes.

- NZPA