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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

C$440.2 mln

Q3 EPS

C$0.34

Q3 Net Income

C$23.83 mln

Q3 Adjusted EBITDA

C$111.53 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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