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Income

Cinemas derive their income from several sources, the most important being:

  • Ticket sales (and membership income if applicable)
  • Food, drink and merchandising sales
  • Advertising revenue (screen and brochure)
  • Public funding

The majority of their income though, is from screening new release films and selling confectionery, fast food and ice-cream to the audiences who attend. A hit film results in high ticket income and high concession sales. And vice versa. There is comparatively little that a cinema can do if there is a poor run of film releases, as the large cinema circuits in the US and UK found during the disappointing summers of 2000 and 2010. Income is calculated as total admissions x average ticket price, while concession revenues are based on average spend per admission.

Illustrative Income Projection (all figures exclude VAT):

Estimated annual admissions 80,000 for a 3 screen cinema

Average ticket revenue £6.00

Annual ticket income £480,000

Film rentals (@38%) (£182,400)

Net ticket income £297,600

Concession income (£1.25 x 80,000) £100,000

Concession cost of sales (£40,000)

Net concession income £60,000

Screen advertising £20,000

Brochure advertising £5,000

Bar & Cafe net profit £30,000

Total annual net income £412,600

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Independent Cinema Office

3rd Floor, Kenilworth House, 79-80 Margaret Street, London W1W 8TA
T: 020 7636 7120 F: 020 7636 7121 E: info@independentcinemaoffice.org.uk

Registered in England and Wales. Company 5369193.
ICO is a registered charity No. 1109053