Cinema operator Cineworld will scrap booking fees and lower the price of online tickets, a move that City analysts think will improve earnings' quality and prompt a re-rating for its shares.
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Currently, just a tenth of Cineworld's customers book online, which limits Cineworld's ability to gather information for marketing and scheduling purposes. The new pricing structure has been tested in Scotland, where online bookings are now double the overall rate and lost booking fee revenues have been offset by slightly higher prices for walk-in customers and greater uptake of its 'Unlimited' subscription card. Cineworld also plans to grow its estate by a third over the next five years, which analysts estimate could add a fifth to operating profits.
