Cineplex is turning to arcades and location-based entertainment as cinema box office sales slow.
Ellis Jacob, president and CEO of Cineplex, told analysts on a conference call that he believes that there is scope to grow to 30 location-based entertainment venues across the country.
It comes after the Canadian operator published its first quarter financial results, that saw its revenues grow by one per cent year-on-year, despite North American box office sales dropping by more than five per cent.
In its recently released financial results, it saw its total revenue increase to CA$294.8m (US$215m), while it also completed the sale of its amusement arm, Player One Amusement Group (P1AG), for CA$155m.
Cineplex expanded its location-based entertainment offering last year, adding a new Playdium location in the greater Toronto area, with three new entertainment openings slated for Q4 2024. In total it runs 13 venues across the country, including the Rec Room and Junxion brands.
The company’s location-based entertainment revenues were down 1.7 per cent when compared to the year prior, but this was put down to poor weather in key regions.
Ellis said: “In the first quarter, we made tremendous strides towards strengthening our balance sheet with the closing of the strategic sale of P1AG, which accelerated our de-leveraging and comprehensive refinancing plan, designed to improve financial flexibility.”
