Cineplex CEO Ellis Jacob says the company has taken a “significant step in the resurgence” of its theatrical business.
During a call to discuss its Q3 financial results on Thursday (Nov. 10), the Canadian theatre chain reported total revenues of $339.8 million for Q3 2022, up 35.7% from $250.4 million from the same period last year, and a net income of $30.9 million compared to a net loss of $33.6 million in Q3 2021.
Box office revenues came to $124.7 million for the quarter in 2022, hitting 70% of pre-pandemic levels in the same period in 2019, according to Cineplex, “despite limited Hollywood film product,” according to Jacob. Cineplex had previously warned investors that box office revenues would slow in August and September due to a lack of high-profile releases.
The company reported media revenues of $25.2 million, an increase of $11.2 million or 79.4% as compared to the prior year period with cinema media revenues coming in at $15.1 million and digital place-based media coming in at $10.1 million due to increased advertising at
digital OOH networks as well as higher project installation revenues.
Ellis partially attributed the box office revenue performance to its exhibition of international films, including Punjabi-language title Chhalla Mud Ke Nahi Aaya. He said Cineplex accounted for 80% of the film’s box office in North America.
July had the best box office revenue of Q3 at $65.6 million, a 15% decrease compared to the same period in 2019, according to the report. The company also had its “third busiest day in the last five years” with National Cinema Day on Sept. 3, which saw an estimated 500,000 attendees, said Jacob.
Box office revenue is expected to increase in Q4 due to the releases of Black Panther: Wakanda Forever on Friday (Nov. 11) and Avatar: The Way of Water on Dec. 16. Cineplex will also host a one-week window of the upcoming Netflix release Glass Onion: A Knives Out Mystery, which Jacob said is “encouraging” for exhibitors, predicting more streaming services will add theatrical windows in the future. “I’m quite confident you’re going to see more content on the big screen,” he said.
Jacob also addressed Cineplex’s ongoing litigation with U.K. chain Cineworld, confirming that the appeal proceedings “remain stayed” due to Cineworld filing for bankruptcy in the U.S. in September. “We continue to work closely with our advisors to monetize and maximize the judgment claim,” he said.
The CEO declined to comment on earlier reports that Cineplex is in talks with Cineworld lenders regarding a potential merger with U.S. subsidiary Regal Entertainment, but said the company is “looking at all options.”
