Canadian cinema operator Cineplex has reaped the rewards of its diversification into the amusement business, as proved by its latest set of financial results.
Not simply relying on theatre revenue has helped it reach a record second quarter revenue high of CA$439.2m, a rise of 7.2 per cent over the previous year.
While theatre attendance figures showed a decline of 1.7 per cent, this was offset by higher box office and concession revenue per patron.
Advertising sales and alternative forms of entertainment added $30m, a 7.3 per cent rise and media increased 21.5 per cent for a quarter record of $49.6m due to the growth in both in-theatre advertising and out-of-theatre digital signage.
Revenue from Player One Amusement Group, its amusement distribution arm, saw a 16.8 per cent rise of $7m to $48.4m.
Its Rec Room brand of FECs saw revenue leap by 33.4 per cent, $5.2m, to $20.9m, illustrating the strength of the out-of-home amusement market in North America.
“As a result of the successful ongoing execution of our diversification strategy, Cineplex reported a record second quarter with increases across all revenue sources,” said Ellis Jacob, president and CEO, Cineplex.
“Looking ahead, the remainder of the year has a variety of powerful titles from sequels to first time stories and I am encouraged by the positive results from our diversified businesses, as we continue to build scale and achieve more meaningful growth in the future,” he said.