Consumer habits are shifting, and the box office just ain’t what it used to be. Cineplex (TSX: CGX) appears to know this all too well, with the firm indicating this morning that the month of December saw its box office revenue figures achieve just 65% of what it mustered in December 2019.
Box office revenues for the month of December totaled just $48 million, down dramatically from the $74.9 million record in December 2019. While an improvement from the $38.0 million recorded in November, November 2022 saw 73% of the revenues exhibited in the comparable 2019 period.
Despite the poor sales, the “location-based entertainment” business is said to have achieved an all-time December revenue record, and Player One Amusement Group reportedly exceeded December 2019’s revenues, although further details were not provided.
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The poor performance comes despite the blockbuster Avatar: The Way of Water being released on December 16, the release of which was claimed to be hampered by winter weather systems and storms across the country at the time of release. This was then further hampered by Christmas Eve and New Year’s Eve both falling on a weekend, which reportedly caused a further attendance impact. The film however managed to account for 62% of total box office revenues in December, with 85% of those attendances said to have consisted of premium offerings.
Other films said to have driven sales include Black Panther: Wakanda Forever, which was released November 11, and Puss in Boots: The Last Wish, which premiered December 21. International films are also said to have driven sales, with international films accounting for five of the top 20 films shown in December.
The December results bring Cineplex’s fourth quarter box office totals to $120.2 million, down from the $181.8 million recorded in 2019, with 2022 sales amounting to just 66% of that of the fourth quarter of 2019. Q3 2022 comparatively achieved 70% of the 2019 figures.
Full fourth quarter financial results are currently slated to be released the morning of February 7.
Cineplex last traded at $8.04 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.
