Cineplex Q1 loss narrows compared with a year ago, revenue up nearly 50 per cent

TORONTO –

An onslaught of high-profile movies set to hit film theatres this summer time has the chief govt of Canada’s largest cinema chain assured that his business is properly previous the worst of its pandemic woes.

“We are excited by the amazing lineup of films for 2023 and believe we have overcome pandemic-related content supply challenges,” stated Ellis Jacob, Cineplex Inc.’s chief govt on a Friday name with analysts.

His outlook comes on the heels of the releases of “The Super Mario Bros. Movie,” “John Wick: Chapter 4” and “Creed III” in current months.

The summer time will see “Barbie,” “Indiana Jones and the Dial of Destiny,” “Spider-Man: Across the Spider-Verse,” “Oppenheimer” and “the Flash” hit theatres, earlier than the autumn brings “Napoleon” from Ridley Scott and “Killers of the Flower Moon” from Martin Scorsese.

The busy movie slate is harking back to pre-pandemic years and indicators a departure from the well being disaster, when movie studios and distributors delayed the discharge of huge flicks and despatched others straight to streaming providers, bypassing theatres altogether.

The slowdown in choices together with compelled short-term closures of cinemas to quell the virus hampered Cineplex’s business, which has been in restoration mode ever since.

On Friday, the Toronto-based firm reported its first-quarter loss narrowed to $30.2 million or 48 cents per diluted share in contrast with a lack of $42.2 million or 67 cents per diluted share a 12 months in the past.

Revenue for the quarter ended March 31 totalled $341.0 million, up from $228.7 million within the first three months of 2022.

The improve in income got here as theatre attendance totalled practically 9.8 million, up from practically 6.7 million in the identical quarter final 12 months.

Box workplace income per patron was $12.63, up from $12 a 12 months earlier, whereas concession income per patron additionally rose to $8.85, up from $8.82 a 12 months in the past.

The outcomes come as Jacob feels “a promising era in the exhibition industry” is on its manner.

He is assured the forthcoming slate of flicks will buoy Cineplex’s future monetary outcomes, even because the leisure business is going through the potential ramifications of a current strike from the Writers Guild of America.

The union represents some 11,500 movie and tv writers, who walked out after failing to achieve a brand new contract with the Alliance of Motion Picture and Television Producers at the beginning of the month.

Cineplex is monitoring the scenario, however Jacob stated the corporate would not anticipate the strike to have a cloth influence on its business.

Such strikes usually have a better influence on community TV and streamers, whose content material is accomplished shortly earlier than it’s launched, he stated.

When the strike started, late-night exhibits instantly went off air with nobody to jot down monologues, and commenced displaying reruns. A slew of TV exhibits, together with “Cobra Kai,” “Abbott Elementary” and “Stranger Things,” have reportedly closed their writers’ rooms or stopped manufacturing since.

“Given the long lead times in making theatrical films, such strikes have historically not had an impact on our industry,” Jacob stated.

When the Writers Guild of America was on strike for about 100 days in 2007 and 2008 and earlier for 152 days in 1988, field workplace revenues have been increased within the three years after the strike than within the three years prior, Jacob stated.

If the strike begins to influence the movie slate, Cineplex should depend on its digital film streaming platform, signage business and array of leisure and eating venues.

The firm has long term RecRoom arcade and eating venues, however not too long ago added theatre, eating and leisure complexes referred to as the Junxion to its portfolio.

The Junxion’s first location opened at Winnipeg’s Kildonan Place in December with reclining seats, an arcade space with greater than 50 video games, a celebration room, reside leisure house and eating choices.

A second Junxion location will open on the Erin Mills Town Centre mall in Mississauga, Ont. this spring.

This report by The Canadian Press was first printed May 12, 2023.