Media, box office results up for Cineplex in Q2

The company's OOH business continued to grow.

Cineplex saw an increase in its media revenues for the quarter ending June 30.

The company’s recently released financial results showed that Cineplex’s advertising business grew year-over-year by 11.5%, reaching $40.8 million for the quarter.

That, combined with better box office results ($187.2 million, up from $170.7 million) drove a better Q2 in 2018 than 2017.

Cineplex’s ad business spans both its movie advertising and its digital place-based advertising, which it operates in malls and other mass venues. Both areas of the media business saw gains this quarter. In-cinema advertising brought in $26.9 million, up from just under $24 million, while place-based revenue was $13.9 million (up from $12.6 million).

In the past, the OOH ad business has driven success at times when the box office has lagged behind.

While the company’s amusement revenues were up overall ($48.6 million, up from $45 million), CEO Ellis Jacob said revenues were lower than expected specifically from its Rec Room Restaurant, which brought in $15.7 million for the quarter. Cineplex opened the Rec Room in 2016 in an effort to expand into more experiential entertainment outside of movies alone, which it’s also done through investments in e-sports tournaments and a partnership with U.S. entertainment chain Topgolf.

Jacob said the company’s further commitment to place-based advertising and entertainment has helped provide a predictable source of revenue in spite of the occasionally unpredictable box office, especially with competing streamers such as Netflix and Amazon becoming increasingly prevalent. Nevertheless, Jacob said, movies such as Avengers: Infinity War, The Incredibles 2 and Deadpool 2 contributed to strong box office sales.