James Bond studio Pinewood sees 3D boom lifting sales

Film studios Pinewood Shepperton Plc expects overall sales for 2010 to exceed market expectations, as several movie makers switch to 3D format, reflecting strong demand from cinema lovers.

The company's bright sales outlook should ease some of the pressure on current Chairman Michael Grade who has faced calls to step down from shareholder Crystal Amber.

On Tuesday, activist investment fund Crystal Amber said it raised its stake in Pinewood to just over 27 percent, becoming its largest shareholder.

The firm, which provided studios for British classics such as the 'Bond' films and the 'Carry On' series, also said it started the second half well on new business wins, even as it posted a lower first-half profit due to certain production delays.

"I am quite pleased we had that delay, a number of our film customers were deciding to (shoot), or change to shooting their production in 3D...It is a longer production process and that should be good and positive news for us," Chief Executive Ivan Dunleavy told Reuters.

The 3D film business has burgeoned since director James Cameron's "Avatar" became the highest-grossing movie of all time.

Productions like 'Harry Potter and the Deathly Hallows', 'Hugo Cabret' and 'Clash of the Titans' have also decided to film in 3D, the company said in a statement.

WORLD CUP HURTS

Pinewood, which has hosted over 600 TV shows, said its first-half television sales were hit after spend on network programs on the main five channels and BBC digital channels continued to fall.

Domestic television production spend was further impacted by the decision of ITV and BBC to finance World Cup program coverage, the company said.

January-June pretax profit for the group was 1.5 million pounds ($2.3 million), compared with 1.7 million pounds last year. Total revenues for the first half fell 6 percent to 19.0 million pounds.

The company, whose studios have been home to over 1,500 films in the last 75 years, also raised its interim dividend by 5 percent to 1.10 pence.

Pinewood shares, which have gained 28 percent since the start of the year, were up 3.2 percent at 178 pence at 1113 GMT on the London Stock Exchange.