Cineplex profit jumps on higher attendance, more concession revenue
Cineplex Inc. had $24.4 million of net income in the second quarter, beating analyst profit estimates, as total revenue increased by 12.4 per cent from last year and the company made progress on its cost-reduction efforts.
The Toronto-based cinema and entertainment company says revenue for the three months ended June 30 was $409 million, a record high for the second quarter.
Attendance was up five per cent from last year, increasing box office revenue by 9.7 per cent to $187.2 million, while revenue from food services jumped 14.6 per cent to a record $114 million.
Box office revenue per patron rose 4.4 per cent to $10.82 and concession revenue per patron rose 9.3 per cent to $6.59.
Cineplex also generated increased revenue from its media and amusement business units.
The company's net income amounted to 38 cents per share, compared with two cents per share or $1.4 million in last year's second quarter.
Analysts had estimated $414 million of revenue, 24 cents per share of net income and 24 cents per share of adjusted earnings, according to Thomson Reuters Eikon.
"Cineplex reported record second quarter results including increases in revenue across all reportable segments," president and CEO Ellis Jacob said in a statement
"In addition to growing our revenue sources, we continue to focus on optimizing our cost structure across our ecosystem, having implemented a cost reduction program during the second quarter with the expectation of realizing annualized cost savings of $25.0 million by the end of the year."
The company announced in April that it would lay off "a number of" full-time workers to eliminate duplicate roles following several business acquisitions.
Cineplex shares were ahead by 1.9 per cent in morning trading Friday on the TSX, climbing to $30.86