Company Breaks All-Time December Record for
Revenue in the Location-Based Entertainment Business
TORONTO, Jan. 12,
2023 /CNW/ - (TSX: CGX) – Today, Cineplex Inc.
("Cineplex" or the "Company") reported December box office revenues
of $48 million, which amounts to 65
per cent of box office revenues generated during the same month in
2019. Leading film performances in December included Avatar: The
Way of Water, representing 62 per cent of the total box office.
Other box office drivers included Black Panther: Wakanda
Forever and Puss in Boots: The Last Wish.
The first two weeks of Avatar: The Way of Water's opening
in December were negatively impacted by winter weather systems and
storms across Canada during the
key holiday period. In addition, both Christmas Eve and New Year's
Eve fell on weekends in 2022, further impacting attendance.
Notwithstanding, Avatar: The Way of Water is already the
seventh highest grossing film of all time and has been especially
successful in driving premium format attendance. In fact, Cineplex
attracted the highest percentage of moviegoers to premium offerings
of any exhibitor in North America,
with UltraAVX, VIP Cinemas, IMAX, D-BOX, 4DX, ScreenX and RealD 3D
accounting for 85 per cent of the film's box office revenues in
December.
Cineplex's content broadening strategy along with its strategic
initiatives once again delivered strong results, enabling the
Company to outperform the North American box office recovery by 633
basis points. International film product accounted for five of the
top 20 films during the month of December. For each of these five
films, Cineplex generated an impressive 30 to 80 per cent of the
North American market share.
In addition, Cineplex's diversified businesses continued with
its strong performance, including an all-time December revenue
record in the Location-Based Entertainment business and Player One
Amusement Group revenues exceeding December 2019's pre-pandemic
levels.
"We continue to see tremendous momentum through our
diversification initiatives, including our amusement and leisure
businesses, expanded content through international film product and
our distribution business, Cineplex Pictures. Earlier this month,
we announced a theatrical distribution agreement with Lionsgate for
its 2023 film slate, bringing 11 titles to Canadian audiences,
including John Wick: Chapter
4, Are You There God? It's Me, Margaret, and
Hunger Games: The Ballad of Songbirds and Snakes," said
Ellis Jacob, President & CEO,
Cineplex. "As we move forward, we remain optimistic about
theatrical movie-going and the strength of our diversified
businesses, which have been an important pillar in the continued
growth of the company," Jacob concluded.
Period
|
2019 Box Office
(i)
|
2022 Box Office
(i)
|
2022 as a Percentage
of 2019
|
October
|
$54,528
|
$33,907
|
62 %
|
November
|
$52,314
|
$37,981
|
73 %
|
December
|
$74,947
|
$48,360
|
65 %
|
Q4 2022
TOTAL
|
$181,789
|
$120,248
|
66 %
|
(i) Balances are in
thousands of dollars.
|
About Cineplex
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.
Caution Regarding Forward-Looking Statements
Certain information included in this news release contains
forward-looking statements within the meaning of applicable
securities laws. These forward-looking statements include, among
others, statements with respect to Cineplex's objectives, goals and
strategies to achieve those objectives and goals, as well as
statements with respect to Cineplex's beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words
"may", "will", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective" and "continue" (or the negative thereof),
and words and expressions of similar import, are intended to
identify forward-looking statements.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, including those described in
Cineplex's Annual Information Form ("AIF"), its MD&A for the
year ended December 31, 2021 and for
the nine months ended September 30,
2022 (collectively, the "MD&A"). Those risks and
uncertainties, both general and specific, give rise to the
possibility that predictions, forecasts, projections and other
forward-looking statements will not be achieved. Certain material
factors or assumptions are applied in making forward-looking
statements and actual results may differ materially from those
expressed or implied in such statements. Cineplex cautions readers
not to place undue reliance on these statements, as a number of
important factors, many of which are beyond Cineplex's control,
could cause actual results to differ materially from the beliefs,
plans, objectives, expectations, anticipations, estimates and
intentions expressed in such forward-looking statements. These
factors include, but are not limited to, the duration and impact of
the COVID-19 pandemic on Cineplex, the movie exhibition industry
and the economy in general, as well as Cineplex's response to the
COVID-19 pandemic as it relates to the closure of its theatres and
location-based entertainment venues, employee reductions and other
cost-cutting initiatives, and increased expenses relating to safety
measures taken at its facilities to protect the health and
well-being of customers and employees; Cineplex's expectations with
respect to liquidity and capital expenditures, including its
ability to meet its ongoing capital, operating and other
obligations, and anticipated needs for, and sources of, funds;
Cineplex's ability to execute cost-cutting and revenue enhancement
initiatives in response to the COVID-19 pandemic; and risks
generally encountered in the relevant industry, competition,
customer, legal, taxation and accounting matters; the outcome of
any litigation surrounding the termination of the Cineworld
transaction; and diversion of management time on litigation related
to the Cineworld transaction. The foregoing list of factors that
may affect future results is not exhaustive. When reviewing
Cineplex's forward-looking statements, readers should carefully
consider the foregoing factors and other uncertainties and
potential events. Additional information about factors that may
cause actual results to differ materially from expectations and
about material factors or assumptions applied in making
forward-looking statements may be found in the "Risks and
Uncertainties" section of Cineplex's MD&A.
Cineplex does not undertake to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
Canadian securities law. Additionally, we undertake no obligation
to comment on analyses, expectations or statements made by third
parties in respect of Cineplex, its financial or operating results
or its securities. All forward-looking statements in this news
release are made as of the date hereof and are qualified by these
cautionary statements. Additional information, including Cineplex's
AIF and MD&A, can be found on SEDAR at www.sedar.com.
SOURCE Cineplex