Everyman Media Group is to bring a 1920s Crystal Palace cinema that has been a church for almost 15 years back to life as an entertainment venue.

The independent cinemas group will spend £3.2 million transforming the former Rialto cinema, which will reopen this year.

The former south London cinema has not been used for its original purpose since 1968.

Everyman revenues rose 37% to £40.6 million in 2017, as the operator expanded to 22 venues around the country. Pre-tax profits climbed from £540,000 to £1.6 million.

Crispin Lilly, chief executive, said south London was still considerably underserved by cinemas, by independent and multiplex operators. “The success of our recent openings in Chelmsford, York, Harrogate and Bristol has convinced us that we can open our cinemas in communities around the country,” he said.

With Oscars season almost over, Lilly said Everyman’s cinemas were trading well as fans considered a cinema ticket a good-value night out.

The average ticket price for Everyman’s cinemas has increased by 3% to £11.28.