Canada's Cineplex Q3 revenue jumps 26% to record high

Overview

• Canada cinema operator's Q3 revenue rose 26% yr/yr to a record C$440.2 mln

• Diluted EPS climbed to C$0.34 from C$0.02 a year ago

• Company launched strategic review, including possible sale of the business

Outlook

• Company expects continued growth supported by upcoming film releases and studio commitment

• Cineplex board is conducting a strategic review, including possible sale of the company

Result Drivers

• FILM SLATE AND ATTENDANCE - Co said revenue growth was driven by a strong film slate and a 23.1% rise in attendance, notably from Spider-Man: Brand New Day and The Odyssey

• PREMIUM FORMATS - Premium-priced formats accounted for a record 51.4% of box office revenue, lifting box office per patron

• THEATRE FOOD SERVICE - Record food service revenue attributed mainly to higher theatre attendance

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the leisure & recreation peer group is "buy"

• Wall Street's median 12-month price target for Cineplex Inc is C$13.75, about 0.8% above its November 5 closing price of C$13.64

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Nov 3 - Cinemark posts record Q3 revenue, net income up 146%

• Nov 4 - AMC Entertainment Q3 revenue beats estimates on strong attendance

• Nov 5 - IMAX tops Q3 estimates on box office strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)