Cineplex Q2 Exhibition Earnings Down, Despite Higher Revenue
Sequels of popular movies franchises like "Pirates of the Caribbean: On Stranger Tides" and "Hangover 2" drove cinema-going during the latest quarter.
TORONTO -- Cineplex, Canada’s biggest cinema chain, posted lower second quarter earnings, despite higher revenue from screening sequels to popular movie franchises.
Toronto-based Cineplex, which operates 130 theatres nationwide with 1,351 screens, saw earnings to June 30 fall to $13.4 million, against a year-earlier $22.2 million, due mainly to a higher income tax charge and other one-time items.
Overall revenue rose 6.6 percent to $258.4 million, box office revenue rose 5.2 percent to $151.1 million, concession revenue was up 5.5 percent to $76.2 million, and other revenues, including media advertising and gaming, rose 17 percent to $31 million.
The biggest Q2 performers were Pirates of the Caribbean: On Stranger Tides, Hangover 2, Fast Five, Thor and Bridesmaids.
Cineplex said 3D, UltraAVX and IMAX movies comprised 26.8 percent of box office revenue during the latest quarter, against 25.9 percent in the year-earlier period.
The Canadian exhibitor has pacted with rival Empire Theaters and the major Hollywood studios to install digital and 3D technology across its chain by late 2012 to take advantage of ticket price premiums on 3D movies.