TORONTO – Expanding into new businesses such as gaming and enhanced specialty food has helped theatre chain Cineplex Inc. lure people from on-demand entertainment in their living rooms, but Star Wars proved to be the actual force behind its blockbuster annual and fourth-quarter results.
Net income a lot more than doubled during the three-month period ended Dec. 31 to $76.8 million or $1.22 per share, up from $32.A million (51 cents) a year earlier, and overall revenue soared 23 percent to $407.4 million, the Toronto-based company said Tuesday.
Box office revenue was $196.3 million in the period, up 14 percent.
The fourth quarter and twelve month 2015 results were the best in Cineplex’s history, Cineplex Entertainment chief executive Ellis Jacob told analysts on a conference call.
“Star Wars: The Force Awakens generated 22 percent of box office revenue throughout the quarter, even though the movie had played for (just) 14 days,” Jacob said, also citing Spectre and also the Martian as strong draws. “Simply put, the quarter would be a tremendous success, and proves once again that consumers love experiencing a film in the theatre on the giant screen having a great sound.”
Star Wars: The Force Awakens, which now had become the third film in history to surpass US$2 billion in global box office sales, along with Titanic and Avatar, was Cineplex’s top film for 2015 and the highest grossing film to date in North America.
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Box office revenue per patron at Cineplex climbed 6.3 percent to $9.63 while concession revenue per patron was $5.58, up 8.6 percent.
Cineplex also had record patron attendance in the quarter of 20.4 million, seven percent higher than a year ago.
Cineplex, which also operates the advertising businesses Cineplex Media and Cineplex Digital Media, has worked to diversify its business recently. It hosts Sony Playstation interactive video gaming tournaments at a number of its bigger theatres which spring it will open its first location from the Rec Room, a venue which will offer gaming elements for example bowling, ping pong, arcade and digital simulation games, in addition to live entertainment, a cafe or restaurant along with a bar.
For the entire year, Cineplex saw revenue rise 11 per cent in 2015 to $1.37 billion, from $1.23 billion in 2014. Overall attendance rose 4.6 percent. Net income rose 76 per cent to $134 million, or $2.12 per share, from 76.3 million ($1.20).
The latest The exorcist instalment also provided holiday toy sales with a significant boost this year.
Toy sales in Canada rose eight per cent in 2015 to $1.8 billion from $1.6 billion in 2014, based on data from market research firm NPD Group Canada, and The exorcist accounted for about 20 per cent of the total increase.
Sales of The exorcist toys surged 244 per cent throughout the week of Dec. 20 to 26 compared with a year earlier. Toys associated with the movie franchise were the top-selling toys of the year in Canada, hitting sales of near to $100 million in Canada.
Financial Post
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