Cineplex revenue rises, profit triples
Popular movies brought in more customers and drew more cash from each one
Last Updated: Thursday, August 13, 2009 | 2:30 PM ET
CBC News
Cineplex Galaxy Income Fund's profit tripled in the second quarter as revenue climbed to $248.6 million from $209.3 million a year earlier.
The fund earned $19.9 million, more than three times higher than year-earlier profit of $6 million.
Box office ticket sales of $151.4 million in the period ended June 30 produced the highest quarterly box office revenues since the fund's inception.
"We attribute this growth to the wide and varied appeal of the movies on screen … in April, a month that historically has not featured strong releases," chief executive officer Ellis Jacob said during a conference call on Thursday.
In recent quarters, Ellis has expressed concern that sales might be hurt by the slowing economy, but second-quarter concession sales were robust.
"In the last 12 months, we haven't raised our prices at the concession stands," Jacob said. "Our focus is to attract as many people to our theatres, and we are very, very cautious" on pricing.
New releases such as Star Trek and Up helped draw 18.2 million people to Cineplex screens during the period, up more than 16 per cent from the 15.6 million during the same period a year earlier.
And the fund earned $8.34 from every patron during the quarter, up from $8.08 during the same period last year.
The fund also boosted its distributable cash to 62 cents per unit, a 55 per cent increase from last year's 40 cents figure.
The fund distributed 31.5 cents per unit, compared with 31 cents per unit a year ago.
The Toronto-based fund owns 99 per cent of Cineplex Entertainment LP, which has a stake in 129 theatres with 1,328 screens across Canada.
With files from The Canadian PressShare Tools
Top News Headlines
- Raitt closer to ending CP Rail strike
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Rail strike if necessary, after both CP Rail and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt tells CBC News she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria, B.C., native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Syrian regime denies role in Houla massacre
- Quebec tornadoes cause millions in damage
- Montreal protesters march in peaceful defiance
- Remains found in bag on Cape Breton river ID'd
- Woman's remains found in hockey bag on Cape Breton river
- Everest team unable to bring down Toronto woman's body
- Neighbour may have helped find missing kids in Mexico

