Cineworld overcomes 3D slowdown - FT.com Cineworld Group saw its box-office takings improve towards the end of 2011 in spite of a drop in 3D revenues. The UK's leading cinema chain by sales said box-office income rose 2.7 per cent in the year to December 29, up from the 1.4 per cent year-on-year increase shown in the first 42 weeks of 2011. That helped to offset a 4.4 per cent year-on-year decline in other revenues, such as sales of 3D glasses and screen advertising, to lift total revenues by 1.5 per cent year-on-year. Retail sales, such as popcorn and drinks, were broadly flat over the year. "Overall it was a satisfactory year for the company," said Philip Bowcock, chief financial officer. In 2011 we had a couple of big surprises in The King's Speech and The Inbetweeners ... We have been resilient to the consumer downturn. Analysts said the trading statement was in line with expectations. "Against a tough consumer backdrop, it is commendable that retail and advertising were flat [year on year]," said Panmure Gordon in a note to clients. The company has maintained its position of number 1 operator in the UK/Ireland, with market share of 24.6 per cent for the year. Broker Collins Stewart forecasts 2011 sales of £355.7m with adjusted pre-tax profits of £38.1m. After Cineworld took the lead in 3D in 2010, with the success of Avatar boosting such movies to 23 per cent of total box-office takings, a poor selection of films and the waning novelty factor saw 3D fall to just below 20 per cent of admissions. Sales of 3D glasses were pushed lower because more consumers were remembering to take them to the cinema, Mr Bowcock said, although he expects 3D's share of box office will "drift upwards" this year. "The general feeling from film buyers is that the slate for both 2D and 3D is better in 2012 than 2011," he said. The Hobbit, new Bond movie Skyfall and the latest Batman picture, The Dark Knight Rises, are all expected to be 2D hits when they debut in the second half of 2012, while in 3D there are hopes for Spiderman, Men in Black and The Avengers. However, Mr Bowcock warned that this summer's London Olympics could mean more potential cinemagoers stay at home on the sofa - although expectations of a "stay-at-home summer" could mean more people remain in the UK to visit the cinema rather than holidaying abroad. "If I were a betting man, it's probably more negative than positive but I don't know," Mr Bowcock said. New cinema openings, such as in Leigh, Greater Manchester in November and a planned Aldershot multiscreen later this year, could help to offset the dampening effect of the Olympics. Cineworld has been investing £40m to install digital screens across its estate, a programme which is expected to be completed by the summer, while a recent tie-up with Imax will see bigger screens arriving in Nottingham and Sheffield after Edinburgh's opened on December 21. he investment in digital will be recouped through rebates from distributors, the main beneficiaries of the shift, over seven to eight years. Harry Potter and the Deathly Hallows (part 2) was the year's biggest movie, grossing £73m in the UK overall, followed by The Inbetweeners and The King's Speech, both taking around £45m. Shares in Cineworld opened 2.7 per cent lower at 202.4p.