Cineplex today released its financial results for the three months ended March 31, 2024. Unless otherwise specified, all amounts are in Canadian dollars. The highlights include:
Total revenue increased to $294.8 million as compared to $291.4 million in the prior year.
Net income was $5.2 million in Q1 2024, an increase from a loss of $30.2 million in the prior year.
All time Q1 record BPP of $12.74 and CPP of $8.95, surpassed records set in Q1 2023
Outpaced the Q1 North American box office relative to Q1 2023 by 664 basis points.
Completed national rollout of online mobile concession ordering.
Increased Digital Place-Based Media revenue by 24 percent over prior year due to expanded digital-out-of-home network.
Completed sale of Player One Amusement Group for $155 million (subject to customary post-closing adjustments) and recognized a gain of $67.3 million.
Completed comprehensive refinancing plan which extended debt maturities, reduced restrictions, and reduced potential dilution.
Thirteen percent of Q1 box office revenues came from international programming.
"In the first quarter, we made tremendous strides towards strengthening our balance sheet with the closing of the strategic sale of P1AG, which accelerated our de-leveraging and comprehensive refinancing plan, designed to improve financial flexibility," said Ellis Jacob, president and CEO, Cineplex.
"We are now focusing on long-term growth with the path to increasing shareholder returns. Despite slower box office, we have emerged stronger and have much to look forward to. Our diversified businesses are gaining momentum, positioning us favorably for the future. With the addition of Cadillac Fairview and Cominar at the beginning of the year, Cineplex Digital Media has increased its out-of-home shopping network to 94 premium shopping centers, which includes nine of the country's top ten busiest malls. A new Playdium location in the greater Toronto area was announced to open later this year as part of three new LBE openings slated for Q4 2024. With compelling margins, the LBE business continues to perform strongly with long-term growth potential.
"Not only do our diversified businesses set us apart from our peers, we also consistently outperform them in North American box office performance. At CinemaCon last month, our studio partners reinforced their commitment to an influx of dynamic content for the remainder of 2024 and into 2025. With new titles continuing to be added and the already strong line up in place, we anticipate a very strong second half of 2024.
"We've laid the groundwork for some of our key growth strategies in the first quarter and feel energized by the upcoming film slate. With our strategic initiatives in place and a promising film lineup on the horizon, we're excited about the opportunities ahead as we continue to prioritize the interests of our shareholders."