Cineplex Galaxy profits from boxoffice boost

Record Q3 receipts for Canada's largest exhibitor

By Etan Vlessing

Nov 10, 2009, 11:14 AM ET

TORONTO -- Those 3D "Ice Age" dinosaurs and premium Imax fare helped lift Cineplex Galaxy Income Fund to record boxoffice during the third quarter on higher attendance at the local multiplex.

Toronto-based Cineplex, Canada's largest exhibitor with 1338 screens in 130 theatres nationwide, posted CAN$20.4 million in earnings for the three months to Sept. 30, up 11% from a profit of CAN$18.4 million in 2008, despite a challenging economy.

Overall revenue rose 7.7% to CAN$257.5 million, against a year-earlier CAN$239 million, as boxoffice revenue rose 7.5% to CAN$155.9 million, a record take in receipts that bettered the CAN$151.4 million recorded in the second quarter of 2009.

Theatre attendance was up 4.4% during the latest quarter to 18.8 million Canadians, against 18 million during the same period last year.

Cineplex did big numbers during the third quarter on a greater variety of films, compared to last year when "The Dark Knight" dominated third quarter 2008 boxoffice. And Cineplex scored with 3D titles that included "Ice Age: Dawn of the Dinosaurs" and "The Final Destination" and Imax releases "Harry Potter and the Half-Blood Prince" and "Transformers: Revenge of the Fallen," which were priced at a premium over regular ticket prices.

Cineplex also managed to push through select ticket price increases in November 2008.

Concession revenue during the third quarter rose 9% to CAN$78 million.

As Canadians continue to embrace the 3D film phenomenon, Cineplex plans to convert up to 30% of its screens to the new digital format by the end of 2010.

Cineplex Galaxy profits from boxoffice boost

Record Q3 receipts for Canada's largest exhibitor

By Etan Vlessing

Nov 10, 2009, 11:14 AM ET