Cineplex offsets weak attendance in Q1, delivers higher revenue, profit

TORONTO -- Canada's largest movie theatre chain is reporting a seven per cent increase in first-quarter profits, saying that a decline in theatre attendance and box office sales was more than offset by other parts of its increasingly diversified business.

Cineplex Inc. (TSX:CGX) says its net income was $23 million or 37 cents per share in the first three months of 2017, up from $21.5 million or 34 cents per share in the comparable quarter of last year.

The Toronto-based company says first quarter revenue went up four per cent to $394.2 million, although box office revenue decreased by 1.7 per cent and attendance fell 4.8 per cent due to a weaker selection of films.

Sales of more premium tickets helped boost box office receipts per patron by 3.3 per cent to a record high $9.97, while revenue from concessions rose five per cent to $5.71 per moviegoer.

Revenue from food service was up 1.7 per cent, media revenue was up 2.6 per cent and revenue from Cineplex's amusements business was up 58.9 per cent, due largely to two acquisitions completed in the fourth quarter.

Cineplex's dividend will grow by 3.7 per cent to $1.68 on an annualized basis, starting with the June monthly payout.

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