Cineplex Reports Record Amusement & Leisure First Quarter Results and Highest Combined April Box Office and Concession Revenues
Cineplex Inc. (“Cineplex” or the “Company”) today released its financial results for the three months ended March 31, 2023. Unless otherwise specified, all amounts are in Canadian dollars.
First Quarter Summary
- Total revenues increased 49% to $341.0 million compared to first quarter of 2022
- Net loss improved to $30.2 million compared to a net loss of $42.2 million in first quarter of 2022
- Adjusted EBITDAaL increased to $20.2 million compared to a loss of $5.7 million in first quarter of 2022
- First quarter record adjusted EBITDAaL of $8.9 million for Player One Amusement Group (“P1AG”)
- All time quarterly record adjusted store level EBITDAaL of $12.1 million for Location-Based Entertainment (“LBE”)
- First quarter record BPP of $12.63, 5.3% higher than prior year
- First quarter record CPP of $8.85, 0.3% higher than prior year
“We were extremely pleased with the record results in our amusement and leisure businesses, which helped mitigate the short-term film content supply challenges during the first quarter of 2023, resulting in total revenues of $341 million and adjusted EBITDAaL of $20.2 million,” said Ellis Jacob, President & CEO, Cineplex. “We are excited to report our highest ever combined April box office and theatre food service revenues in April 2023.”
“Coming out of this year’s CinemaCon convention, the commitment of traditional and non-traditional studios to theatrical has never been stronger. We are extremely pleased with the quantity and quality of upcoming film product for the remainder of 2023 and into 2024. We look forward to many more highly anticipated films set to hit the big screen over the next few months including ‘Fast X,’ ‘The Little Mermaid,’ ‘Spider-man: Across the Spider-Verse,’ ‘The Flash,’ ‘Indiana Jones 5 and the Dial of Destiny,’ ‘Mission: Impossible 7 Dead Reckoning Part One,’ ‘Oppenheimer,’ ‘Barbie,’ and many more.”
“With strong film product, commitment from our studio partners, and the record results from our diversified businesses, we have much to be excited about in the future,” Jacob concluded.
The following table compares 2023 monthly box office revenues to 2019 monthly box office revenues:
First Quarter Financial Results
Key Developments In 2023
The following describes certain key business initiatives undertaken and results achieved during 2023 in each of Cineplex’s core business areas:
Film Entertainment and Content
- Reported first quarter box office revenues of $123.3 million, an increase of $43.4 million (54.3%) from $80.0 million due to a 46.6% increase in theatre attendance as a result of Cineplex’s theatre circuit being open during the entire period, compared to the prior year where select provinces were subject to operating restrictions.
- Reported a first quarter record BPP of $12.63, $0.63 or 5.3% higher than the $12.00 reported during the prior year due to a higher percentage of premium ticket sales in the current period as compared to the prior year.
Theatre Food Service
- Reported first quarter theatre food service revenues of $86.4 million, an increase of $27.7 million (47.1%) compared to the prior year primarily due to a 46.6% increase in theatre attendance.
- Reported first quarter record CPP of $8.85, an increase of $0.03 or 0.3% compared to the prior year, due to product mix and modest price increases.
Alternative Programming and Distribution
- Entered into a theatrical distribution partnership with Lionsgate on January 5, 2023, for its 2023 film slate, bringing 11 titles to Canadian audiences.
- As part of the theatrical distribution partnership with Lionsgate, Cineplex’s distribution business (Cineplex Pictures) distributed “PLANE” on January 13, 2023, “Jesus Revolution” on February 24, 2023 and “John Wick: Chapter 4” on March 24, 2023. Additionally, Cineplex Pictures released a number of feature films during the quarter, including “Creed III” and “There’s Always Hope.”
- Featured numerous strong performing international films, including “Pathaan” (Hindi), which became Cineplex’s number one Indian and international movie of all time. Cineplex also featured other strong performing international films including Kali Jotta (Punjabi), “Tu Jhoothi Main Makkaar” (Hindi) and “The Wandering Earth 2” (Chinese (Mandarin), of which Cineplex represented 83%, 40% and 32%, respectively, of the total North American box office market share.
- During the first quarter of 2023, Event Cinema featured two major concert events, from K-Pop sensations BTS (BTS: Yet to Come) and André Rieu (André Rieu in Dublin) and two live presentations of The Metropolitan Opera, including Fedora (Giordano) and Lohengrin (Wagner).
- Total registered users for Cineplex Store increased 4.0% compared to the prior year, reaching approximately 2.3 million registered users.
- Launched the Cineplex Store app on Android TV and Google TV enabled devices.
- Expanded content offering including HBO’s TV series, House of the Dragon and The Last of Us and AMC TV series,
Better Call Saul and Lucky Hank.
- Celebrated Black History Month with a collection of films available on the Cineplex Store where $1 from every
purchase was donated to The Black Academy, an organization that celebrates, empowers and showcases Black
• Reported first quarter media revenues of $22.3 million, an increase of $6.8 million or 43.4% as compared to the prior
- Reported first quarter cinema media revenues of $14.3 million, an increase of $6.0 million or 73.3% over the prior year resulting in the return of advertisers to cinema in a variety of sectors, including financial services and broadcast media.
Digital Place-Based Media
- Reported first quarter revenues of $8.0 million, an increase of $0.7 million or 9.7%.
Amusement Solutions and LBE
- Reported all-time quarterly record revenues of $75.8 million, an increase of $25.3 million or 50.3% compared to the
Player One Amusement Group
- Reported all-time quarterly record revenues of $49.6 million, an increase of $14.8 million or 42.4% compared to the
prior year. Adjusted EBITDAaL during the first quarter was a first quarter record of $8.9 million, an increase of $3.9 million or 77.9% compared to the prior year. The increase in revenues and adjusted EBITDAaL were primarily due to increases in P1AG amusement revenues from US and Canada route locations at FEC’s and theatres, along with an increase in distribution sales.
- Reported all-time quarterly record revenues of $35.1 million, an increase of $15.0 million or 75.0% compared to the
- Reported all-time quarterly record adjusted store level EBITDAaL of $12.1 million, an increase of $5.1 million or
71.3% compared to the prior year. The increase in revenues and adjusted EBITDAaL were primarily due to all LBE
venues being open during the entire period, compared to the prior year where select provinces were subject to operating
- Membership in the Scene+ loyalty program increased to over 12 million members as at March 31, 2023.
- Empire brands launched Scene+ in Quebec on March 23, 2023, providing members with opportunities to earn and redeem Scene+ points through Empire’s family of brands across the country.
- On March 28, 2023, Cineplex entered into the Seventh Credit Agreement Amendment (the “Seventh Amendment”),
which revised certain of the financial covenants throughout the remainder of 2023.
- Celebrated National Popcorn Day on January 19, 2023 by treating Scene+ members across the country with a free bag of popcorn. Additionally, theatre teams across Canada gifted first responders with popcorn as a show of appreciation.
Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of over 170 movie theatres and location-based entertainment venues. In addition to being Canada’s largest and most innovative film exhibitor, the company operates Canada’s favourite destination for ‘Eats & Entertainment’ (The Rec Room), complexes specially designed for teens and families (Playdium), and a newly launched entertainment concept that brings movies, amusement gaming, dining, and live performances together under one roof (Cineplex Junxion). It also operates successful businesses in digital commerce (CineplexStore.com), alternative programming (Cineplex Events), motion picture distribution (Cineplex Pictures), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group). Providing even more value for its guests, Cineplex is a partner in Scene+, Canada’s largest entertainment and lifestyle loyalty program.
Proudly recognized as having one of the country’s Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across Canada and the United States. To learn more, visit Cineplex.com.