Profits triple at Cineplex
The exhibitor's latest quarter saw Canadians readily pay a $3 premium to see 3D films like Monsters vs Aliens and Night at the Museum: Battle of the Smithsonian.
Is there really a recession out there?
Cineplex Galaxy Income Fund’s bet on offering Hollywood fare in hard times is paying off.
Canadians are flocking to the local multiplex in droves – the exhibitor sold 18.2 million tickets in the three months to June 30, 2.6 million more than in the same period of 2008 – helping to drive up the exhibitor’s second-quarter profits to $19.8 million, from $6 million in 2008.
Cineplex Galaxy also posted record revenue of $248.6 million to June 30, compared to a year-earlier $209.3 million, as Hollywood movies like Fast and Furious, Star Trek and Transformers: Revenge of the Fallen tempted Canadians with cheaper entertainment closer to home.
‘People love going to the movies for both entertainment and an escape,’ Cineplex Galaxy CEO Ellis Jacob said.
The exhibition giant so far has 124 screens capable of showing 3D movies, and will extend that to 175 screens. For that investment, Cineplex Galaxy during the latest quarter saw Canadians readily pay a $3 premium to see 3D films like Monsters vs Aliens and Night at the Museum: Battle of the Smithsonian.
3D now comprises 12% of Cineplex Galaxy’s ticket sales, and could grow to 30%, the company said.
And concession sales grew – up 20% to $74.2 million – during the latest quarter as popular Hollywood summer hits brought out families, which tend to buy higher-margin food and other product at the local multiplex, Cineplex Galaxy reported.
From Playback Daily