Cineplex Inc. (“Cineplex” or the “Company”) today released its financial results for the three and six months ended June 30, 2022. Unless otherwise specified, all amounts are in Canadian dollars.
“Cineplex delivered its strongest quarter in over two years, thanks to a great film slate and record-breaking results from across our diversified businesses,” said Ellis Jacob, President & CEO, Cineplex. “The cumulative success of Top Gun: Maverick, Doctor Strange in the Multiverse of Madness, and Jurassic World Dominion during the quarter – which saw each film opening with a domestic box office over $100 million – is a testament to the fact that when strong film product is available, Canadians return to our theatres in droves. We generated positive net income for the first time since the start of the pandemic. We also achieved a second quarter record BPP of $12.29 and an all-time quarterly record CPP of $8.84. We also saw very encouraging results in our other businesses, including an all-time quarterly record adjusted EBITDAaL in Player One Amusement Group and record second quarter adjusted EBITDAaL in the Location-Based Entertainment business.”
Jacob continued, “in addition to reporting our strongest results since the pandemic began, this quarter we are celebrating a few other important milestones from across the business, including the expansion of the Scene+ loyalty program and Empire Company Limited joining Scotiabank and Cineplex as partners. Today, we are also celebrating the one-year anniversary of CineClub.”
“With respect to the Cineworld litigation, we remain focused on preparations for the Ontario Court of Appeal hearings which are scheduled for October 12 and 13 of this year. As part of the ongoing efforts to maximize and monetize the value of the judgement, we have engaged Moelis & Company as financial advisor and Goodmans LLP as lead counsel,” said Jacob.
“As we look forward, we remain confident in the recovery of our businesses, our strong capital management and liquidity, and our efforts to manage financial uncertainties as we have done during previous economic downturns. The strong quarterly results aided our compliance with the financial covenant testing for the second quarter of 2022. In anticipation of ongoing film release shifts caused by COVID-19 related production delays, we have received the support and confidence of our lending group for the suspension of financial covenant testing in the third quarter of 2022. With the backdrop of recessionary concerns, Cineplex is well positioned to further capitalize on pent-up consumer demand for affordable out-of-home entertainment,” Jacob concluded.
KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2022
The following describes certain key business initiatives undertaken and results achieved during the second quarter of 2022 in
each of Cineplex’s core business areas:
FILM ENTERTAINMENT AND CONTENT
- Reported second quarter box office revenues of $136.4 million, a $123.9 million increase from 2021 as a result of
increased theatre attendance compared to theatre closures that remained in effect for a majority of the prior year period
due to government mandated restrictions.
- BPP was $12.29, a second quarter record, which increased by $1.40 or 12.9% when compared to the prior year period,
primarily due to an increase in premium offerings in the current period as compared to the prior period which had no 3D
or ScreenX performances, in addition to the VIP auditoriums being closed for the majority of the second quarter of
- Introduced an online booking fee on June 15, 2022 that applies to tickets purchased through Cineplex’s mobile app and
website that will contribute to Cineplex’s further investment in its digital infrastructure.
Theatre Food Service
- Reported second quarter theatre food service revenues of $98.0 million, an increase of $89.0 million compared to the
prior year period primarily due to a significant increase in theatre attendance.
- CPP was $8.84, an all-time quarterly record, representing an increase of $0.98 or 12.5% when compared to the prior
year period, primarily due to an increase in food service sales at VIP auditoriums which drive a higher CPP and modest
- During the second quarter, Cineplex hosted the global exclusive free fan event finale of Star Wars Obi-Wan Kenobi
with a live broadcast to an additional nine locations from the Scotiabank Theatre in Toronto. This event also included a
special question and answer session featuring Canadian director Deborah Chow and Canadian actor, Hayden
- Alternative Programming (Cineplex Events) in the second quarter of 2022 included the anime feature Jujutsu Kaisen 0,
Turandot and Hamlet from The Metropolitan Opera, a concert from Twenty One Pilots, the anime feature Seventeen
Power of Love and a two-night event for WWE Wrestlemania 38.
- Total registered users for Cineplex Store increased 10% from the prior year period, reaching over 2.2 million registered
- Reported second quarter media revenues of $26.4 million, an increase of $17.0 million or 180.9% as compared to the
prior year period.
- Reported second quarter cinema media revenues of $18.7 million, an increase of $16.3 million or 675.4% over the prior
year period, due to increases in cinema advertising as a result of reopened theatres and new film releases.
Digital Place-Based Media
- Reported second quarter revenues of $7.7 million, an increase of $0.7 million or 10.3% due to higher project installation
AMUSEMENT AND LEISURE
- Reported all-time record revenues in the second quarter of $65.7 million, an increase of $43.5 million or 196.3%
compared to the prior year period primarily due to increases in P1AG amusement revenues from US and Canada route
locations at FEC’s and theatres, and increases in amusement revenues from LBE businesses.
- Reported all-time record revenues in the second quarter of $28.1 million, including a second quarter record for food
service revenues of $10.2 million, all-time record for amusement revenues of $17.4 million and $0.5 million of media
and other revenues, an increase of $26.0 million compared to the prior year period. The increase was primarily due to
all LBE venues being open without capacity restrictions compared to closures that remained in effect for a majority of
the prior year period.
- Membership in the Scene+ loyalty program remained flat during the period ended June 30, 2022.
- Announced updates to the Scene+ program, welcoming Empire Company Limited as a co-owner of Scene+, providing
members with increased opportunities to earn and redeem points. Empire will rollout Scene+ across their family of
brands in Atlantic Canada in August 2022, and by early 2023, will be launched across Canada.
- Celebrated Pride Month with a collection of films available on the Cineplex Store aiming to recognize and amplify
LGBTQ2IA+ voices, with a portion of the proceeds donated to support local Pride celebrations across Canada.
- Partnered with imagineNATIVE, the world’s largest presenter of Indigenous screen content to curate a Cineplex Store
collection to raise awareness of the rich culture, history and experiences of Indigenous people, with a portion of the
proceeds donated to charitable causes.