Canada's Cineplex Chain Sees Q2 Profits Leap on Premium Ticket Prices
TORONTO – Canadian exhibition giant Cineplex Entertainment is reaping the rewards of investing heavily to put super-sized Hollywood movies on its screens at premium ticket prices.
Toronto-based Cineplex reported second quarter earnings up 56 percent to $21 million, on revenue of $263.6 million, up 2 percent from a year-earlier $258.4 million.
Cineplex has pacted with rival Empire Theaters and the major Hollywood studios to install digital and 3D technology across its chain to take advantage of ticket price premiums on 3D movies.
“Our investment in premium-priced offerings including 3D, UltraAVX, Imax and VIP Cinemas, combined with Hollywood's increased 3D film slate, resulted in record second quarter box office revenues and BPP,” Ellis Jacob, president and CEO at Cineplex Entertainment, said in a statement on release of the latest financial results.
Second quarter box office revenue was up 3.4 percent to $156.2 million, helped by Marvel’s The Avengers, which represented 22.6 percent of overall ticket receipts while also being screened in Imax and 3D, in addition to Q2 performers like The Hunger Games and Men in Black 3.