Cineplex Reports Q4 Loss | CP24.com

TORONTO — Taylor Swift brought big audiences to movie theaters around the world when it ended in 2023, but it wasn't enough to keep Canada's largest movie theater chain from losing money in the last quarter.

Cineplex Inc reported a fourth-quarter loss of $9 million on Thursday, compared with a profit of $10.2 million a year ago.

The decade that ended Dec. 31 was typically a busy period for movies, as the Oscars are usually held in the second half of the year, but the entertainment business faced several unique factors last year, including a lengthy strike in Hollywood that threatened movie releases. table.

The US writers' strike lasted from May to September, and actors across the country were out of work for nearly four months before they secured a deal that would bring them back to work.

When pop star Swift shocked the world in August by revealing plans to bring a theatrical film about her hit concert to theaters in October, it was welcome news for movie theaters — a vision that Cineplex CEO Ellis Jacobs still supports.

On a call with analysts on Thursday, he called 2024 “the undisputed year of Taylor Swift.”

“Everyone was worried about where our business was going and the lack of content because of the strikes, (Swift's film) was a great injection of story that brought out our guests in a big way,” he said later. interview.

Based on the box office, the film was Cineplex's No. 1 film in the fourth quarter and the industry's biggest concert film of all time.

That added to Cineplex's fourth-quarter revenue of $315.1 million, up from $309.9 million in the final three months of 2022.

Box office revenue per patron was $12.90, down 1.2 percent from $13.06 a year ago, and concession revenue per patron was $9.28, down from $8.93 in the same quarter of 2022.

The increase in concession revenue per patron was driven by an increase in theater attendance to 9.6 million, compared to 9.2 million a year ago.

Jacob believes audiences will continue to flock to theaters as Hollywood returns to its previous pace of production and the strike-delayed films — Zendaya's “Challengers” and Quebec's Denis Villeneuve's “Dune: Part Two” — see their release dates. .

Cineplex will also be showing highly anticipated movies like Beetlejuice Beetlejuice, Lord of the Rings: War of the Rohirrim, Despicable Me 4 and Mufasa: The Lion King later this year.

With several of these names coming in the final months of 2024, Jacobs said, “at this point, the fourth quarter looks very strong compared to 2023.”

In 2023, Cineplex wrapped up screenings of “Renaissance: The Beyoncé Movie,” “Ferrari,” “Wonka,” “Iron Claw” and “Aquaman and the Lost Kingdom.”

“When we went into the quarter, I was really nervous because I believed in Wonka and Aquaman and there wasn't a lot of depth, so I was a little worried, but I think we made the quarter for next year. very strong fashion,” said Jacob.

In the weeks following the quarter's end, Cineplex pulled South Indian film Malaikottai Vaoliban from theaters after four drive-by shootings at theaters in the Greater Toronto Area.

Jacob says Cineplex's commitment to international programming, which accounts for 10 percent of its annual box office revenue compared to four percent at most peers, remains unchanged.

“We have to watch what we do and where we play it, and we're working very closely with the authorities,” Jacob said, stressing that the most important thing is the safety of staff and moviegoers.

“Did it hurt us financially? Yes, but it's more important for me to know what's going on in our location.”

The company's next quarter will include a refinancing plan it announced Thursday to improve its financial flexibility and reduce the dilutive effect of its convertible debt obligations.

A case is also pending against the Competition Bureau, alleging that Cineplex used deceptive marketing to charge small fees on some tickets purchased online.

In an analyst call, Jacobs called the allegations “baseless” and said Cineplex would “vigorously defend itself” against fee-related class actions.

This report by The Canadian Press was first published on February 8, 2024.