13 Appendix 2: Sample Sensitivity Analysis for one screen
In the following example the sensitivities are: Occupancy rate, film hire costs, ticket price
| Bases for projections – baseline figures | Scenario 1 – Occupancy rate falls to 15% | Scenario 2 – Film hire costs increase to 40% | Scenario 3 – Net ticket price drop to £5.20 | |
|---|---|---|---|---|
| Occupancy rate | 20% | 15% | 20% | 20% |
| Film hire cost | 35% | 35% | 40% | 35% |
| Net ticket yield | £6.00 | £6.00 | £6.00 | £5.20 |
| Total annual perfs | 800 | 800 | 800 | 800 |
| No. seats | 300 | 300 | 300 | 300 |
| Annual admissions | 48000 | 36000 | 48000 | 48000 |
| Profit and loss account | £ | £ | £ | £ |
| Box office sales (net of VAT) | 288,000 | 216,000 | 288,000 | 249,600 |
| Less film hire | 100,800 | 75,600 | 115,200 | 87,360 |
| Gross profit | 187,200 | 140,400 | 172,800 | 162,240 |
| Fixed costs | 150,000 | 150,000 | 150,000 | 150,000 |
| Net profit/loss | 37,200 | -10,000 | 22,800 | 12,240 |