Despite the pandemic being viewed as effectively over by the masses, it appears that some habits still have yet to revert to pre-pandemic days. Specifically, no one is going to the movies quite like they used to.
Cineplex Inc (TSX: CGX) this morning posted box office results for the month of August, and quite frankly, they’re disappointing. The company saw August box office sales come in at $36.1 million, which is just 64% of the $56.5 million in box office sales the company saw in August 2019, before the pandemic began.
July box office results were significantly better, with revenues of $65.6 million, or roughly 85% of the $76.9 million in box office revenues recorded in July 2019.
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Combined, the company has indicated that box office revenues for the third quarter are presently sitting at $101.7 million as of the end of August, which is on track to surpass the $136.4 million in box office revenues recorded in the second quarter. The company has also indicated that September 3 was the firms busiest day of the year so far.
“We remain laser-focused on advancing growth initiatives across all of our diversified businesses – including Media and Amusement & Leisure – and driving long-term value for our shareholders as we enhance our position as an industry leader. As we move forward, we are confident about the recovery of our businesses, as well as our teams’ ability to capitalize on the impressive film slate scheduled for the remainder of this year and beyond,” said CEO Ellis Jacob.
The preliminary box office data release follows the firm commenting yesterday on the Chapter 11 filing made by Cineworld, and the expected impact it will have on Cineplex’s operations.
The company says it “remains optimistic about consumer demand and content supply” for the remainder of 2022 as well as for 2023.
Cineplex last traded at $8.36 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
