The UK box office enjoyed its best year in 2004 as takings rose by 3.5% to £838.7m, Screen Daily has reported.
Shrek 2 was the biggest UK film of the year
Attendance figures for the year rose 6% on 2003 to 156.8m, according to research company Nielsen EDI.
Shrek 2 was the biggest hit of the year with takings of £48.1m, closely followed by Harry Potter and the Prisoner of Azkaban on £46m.
December figures have yet to be calculated but it is thought they will be down on the previous two years.
The main reason for the expected decline in December figures is the lack of a Lord of the Rings release, which had proved such blockbusters in 2002 and 2003.
Attendance for the year is also not expected to match that of 2002, when 174 million people visited cinemas.
But that was a particularly strong year for blockbusters including Spider-Man and Star Wars: Attack of the Clones.
TOP FIVE FILMS OF THE YEAR
1. Shrek 2 - £48.1m
2. Harry Potter and the Prisoner of Azkaban - £46.07m
3. Bridget Jones: Edge of Reason - £35.08m)
4. Spider-Man 2 - £26.7m)
5. The Incredibles - £28.6m
Bridget Jones: The Edge of Reason was the third biggest UK film of 2004, with takings of £35m, and is still on general release.
Spider-Man 2 and The Incredibles also ensured takings were up for the year.
The US also enjoyed a bumper year with Shrek 2 once again emerging as the biggest film, with box office receipts of $436m (£229m).
A record $9.4bn (£5bn) was taken at the box office, although attendance numbers actually fell slightly.