Cineplex has nearly doubled its annual revenue year-over-year as it continues to recover from widespread closures due to the pandemic, according to its latest financial report.
The Canadian theatre chain earned $1.27 billion in revenue for fiscal 2022, up 93.2% from $656.7 million in 2021. Attendance saw a similar spike, coming to more than 38 million in 2022, an increase of 89.5% compared to more than 20 million the previous year.
Notably, a large number of Cineplex theatres were closed in Q1 2022 due to restrictions sparked by the rise of the COVID-19 Omicron wave. And, while attendance figures are climbing, they have yet to exceed pre-pandemic levels. Cineplex reported more than 66.3 million guests in 2019 and more than 69.3 million in 2018.
Another positive sign for the company: its year-end net income came in at a gain of $113,000 in 2022, compared to a loss of approximately $248.7 million in 2021.
Cineplex president and CEO Ellis Jacob said in a statement that the company’s strategic investment in premium formats impacted revenue gains, with a record-breaking 50% of box office revenue “derived from premium experiences.” Premium formats include 3D, AVX, VIP and IMAX.
Revenue in Q4 2022 came to $350.1 million, up 16.7% compared to $299.9 million in Q4 2021. Cineplex reported a net income gain of $10.2 million in the quarter compared to a net loss of $21.8 million in the previous Q4.
Cineplex also shared that box office revenue in January 2023 was within 88% of pre-pandemic levels, coming in at $45.7 million compared to $52 million in 2019. Top performers at the January box office included Avatar: The Way of Water and horror film M3GAN.
While much of the growth was due to improved box office, Cineplex Media also saw major gains as audience growth led to greater advertiser demand. Total media revenues increased $11.8 million, or 35.9%, during the fourth quarter of 2022 compared to the prior year period, with 37.4% growth for in-cinema ads and 32.8% growth for the company’s place-based network of digital signage. For the full year, media revenues hit $111.7 million, a 71% increased compared to the prior year, with 119.3% growth in cinema advertising and 21.9% in its signage network. However, those numbers have also not reached pre-pandemic levels.
“As we move forward, we remain optimistic about the future of theatrical exhibition and all of the other industries we operate in,” said Jacob. “We have confidence in the ongoing recovery of content volume and box office as traditional and non-traditional studios derive increasing awareness and economic value from theatrical… Cineplex is in a stronger position now than it was a year ago and we expect this momentum will continue into 2023.”
With files from Josh Kolm.
