Cineplex swung to a first quarter loss as the movie theater giant reported lower Hollywood box office.
Cineplex posted a first quarter net loss of CAN$36.6 million (US$26.2 million), compared to a profit of CAN$5.2 million in the same period of 2024 when the company recorded a gain of CAN$68 million after selling its Player One Amusement Group business to private equity firm OpenGate Capital.
Revenue for the quarter came to CAN$264.3 million (US$189.7 million), compared to a year-earlier $294.8 million, while box office revenues fell 18.5 percent to CAN$101.9 million (US$73.2 million) during the same period.
A weaker movie slate during the latest quarter was most acute in March, when box office revenue fell by 50 percent to CAN$29.5 million (US$21.7 million), when compared to the first quarter of 2024. Theatre attendance fell by 14.5 percent during the first quarter to 8.4 million patrons.
During the current quarter to the end of June, ticket sales have rebounded, with box office in April rising 76 percent to $51.3 million (US$36.8 million) as films like Sinners and A Minecraft Movie played on Cineplex screens.
Also during the first quarter, Cineplex saw 14.7 percent of its box office revenue come from international movies, including the Chinese hit Ne Zha 2 and the Hindi language film Chhaava.
During a morning analyst call, CFO Gord Nelson said virtually all of Cineplex revenue comes from the Canadian market, so the company will not face a material impact from U.S. President Donald Trump’s global trade war, which includes tariffs slapped on Canada.
Responding to a question about Trump’s surprise movie tariff proposal for foreign movies, CEO Ellis Jacob said he anticipated film production to continue across the U.S. and internationally, “depending on the overall cost of the film.”
“But I’m not overly concerned about the comments that have been made over the last few days,” Jacob added. After talks with major studio suppliers, Jacob said after his own initial concerns, he believed the Hollywood studios will continue to make movies at home and overseas.
“As the week has gone on, I feel there’s less of a huge risk, because it’s going to be very difficult, because movies are made in different parts of the world, in different U.S. states, and a lot of them are finished in California,” Jacob told analysts.
