Recession is a golden ticket for Cineplex Galaxy
Last Updated: Thursday, February 12, 2009 | 5:27 PM ET
The Canadian Press
The economy may be slowing, the recession may be intensifying, but Canadians can still find the cash for a movie ticket, if profits at Cineplex Galaxy are any indication.
The cinema chain operator says attendance at its theatres was up 16 per cent in the final quarter of 2008, and the chain made a $7.1-million profit, rebounding from a $2.8-million loss in the same period a year earlier.
Cineplex Galaxy benefited from a series of Hollywood blockbusters, such as the latest James Bond punch-up Quantum of Solace and the vampire romance Twilight.
"We had a lot of product that appealed to different demographics," said chief executive Ellis Jacob.
Concession revenues — from the sale of popcorn, drinks and snacks, a significant profit driver for exhibitors — increased 21.3 per cent to $61.4 million. The average concession revenue per patron rose to $4.03 from $3.87.
Cinema chains tend to thrive in bad economies because they're considered a relatively cheap form of entertainment.
Not all of Cineplex’s revenue streams saw improvement, however.
Profits from pre-show advertising and lobby ads slid 1.1 per cent to $19.9 million, as fewer advertisers, affected by the economic recession, booked on-screen advertising.
Cineplex is the largest motion picture exhibitor in Canada, with ownership interests in 130 theatres with 1,331 screens from British Columbia to Quebec.
The company employs more than 8,000 people and operates Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres.
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