Palace Cinemas multiplexes profit down

Prague, Oct 16 (CTK) - Palace Cinemas Czech, a company running six multiplexes in Prague and Brno, saw net profit fall to Kc19.3m last year from 2007's Kc47.6m, and its sales decreased by Kc3m to Kc528m, according to the company's annual report made public in the Collection of Documents.

The fall in sales was caused by lower advertising incomes - by some Kc10m to Kc51.5m. Some rival multiplexes also registered lower sales from advertising. Experts say less money spent on cinema commercials has been caused by the economic crisis.

Most of Palace Cinemas Czech revenues came from the sale of tickets which generated Kc357m, Kc4m more than in 2007. Sale of refreshments brought in Kc94.5m, up Kc2m.

The company kept its leading position on the market in both cities where it is active, in attendance as well as in sales.

Rival CineStar, which runs nine multiplexes in the Czech Republic, raised sales by Kc94m to a record Kc483.3m last year and its Kc30.5m profit was roughly the same as in 2007.

Ticket sales grew from Kc273.7m to Kc297.5m. Sale of goods grew from Kc75m to Kc88.3m. CineStar's advertising income fell by Kc7m to Kc30.3m.

Palace Cinemas Czech is owned by Dutch company Palace Cinemas. CineStar was owned by Dutch company CineStar International and CineStar's executive Pavel Vodicka at the end of last year, each with 50 percent.

Sales of domestic multiplex cinemas last year for the first time broke through Kc1bn, reaching Kc1.026bn, while in 2007 sales were worth Kc942m, and nearly 8.6 million people visited multiplexes last year, 372,000 more than in 2007.

The share of multiplexes in total sales of cinemas in the Czech Republic grew to 84.2 percent last year from 78.5 percent in 2007. As for cinema audiences, the share of multiplexes grew from 63.8 percent in 2007 to 66.5 percent last year.

The number of multiplexes has been growing fast in the Czech Republic in the past years. The first one was opened in the country in 1999. At the beginning of this year, there were 24 multiplexes already, some ten of them in Prague.

Expansion of multiplexes continues in the Czech Republic and their operators now focus more on regional capitals. Palace Cinemas Czech intends to open three next year - in Usti nad Labem, Liberec and Ostrava. CineStar plans to open a new multiplex in Usti nad Labem.