The operator of Greater Union cinemas, Amalgamated Holdings Ltd
(ASX:AHD), has downgraded its earnings guidance, blaming market conditions.
The entertainment, hospitality and leisure operator now expects first-half normalised profit to slip between 25 to 30 per cent under the $64.9 million delivered in the prior corresponding period.
Amalgamated Holdings attributes the downgraded forecast to lower cinema admissions, in particular the impact of soft film product that contributed to Australian cinema admissions falling by over 20 per cent in December.
Amalgamated Holdings says the decline in admissions has continued in 2011, with Queensland’s flood crisis impacting the company's cinema and hotel operations in Queensland and northern New South Wales.
First half results are due for release on 24 February 2011.
In the 2010 financial year, Amalgamated Holdings posted a net profit of $98.8 million.
