Cineworld Group [LSE: CINE]
Cineworld, the world’s largest operator of cinemas by number of screens, reported its earnings today and the sector continues to enjoy strong growth. Average ticket prices rose by around 4% and box office sales rather than ancillary products appear to be key drivers of revenue growth. Group revenues are up 6.2% and the dividend has been hiked by 14.5%. Perhaps one hiccup is the absence of virtual print fee revenues in the UK last year serving to hit margins in the territory, but give the tough consumer climate the overall performance does appear sound.
Savills [LSE: SVS]
Global estate agent Savills has published full year results this morning and the company’s geographical diversification does seem to be well placed. Revenues rose 11%, earnings per share are up 5% and the dividend has been lifted by 4% too. There is a pattern here however – margins are being squeezed and it appears this has been the result of a downturn of some profitable business in the USA. Interestingly, the volume of UK home sales business is also slowing – the number of transactions fell 7%, but with transaction values up 3%, this still reflected at 2% jump in overall revenues for the division.
United Utilities Group [LSE: UU]
Capital Markets days, where companies showcase their future ideas to institutional investors and analysts, are often rather insightful affairs. United Utilities is set to undertake such an exercise today with a central theme on innovation and how this is improving standards for customers. The water industry saw its regulator turn around last December and enforce further price cuts from 2020, so it will be interesting to see to what extent any of this promised innovation may deliver long term value for customers, the environment and for shareholders.
