Cineplex Galaxy Income Fund, Canada's biggest movie exhibitor, will expand its 3-D offerings this summer with an eye to a future that could include three-dimensional screenings of professional sports games in theatres across the country.

The company plans to install 161 new digital projectors in 72 of its theatres by the end of June, 122 of which will be 3-D capable, Cineplex executive vice-president Dan McGrath said Wednesday at the company's annual shareholder meeting.

He said the film industry's planned conversion to digital projectors was delayed by tight credit markets caused by the financial crisis in late 2008, but Cineplex decided to "move ahead with some digital conversions in order to capitalize on a great slate of 3-D films."

Cineplex president and chief executive Ellis Jacob said already-released 3-D movies like Monsters vs. Aliens have been hugely successful, and he expects this trend to continue with new movies like Up and Ice Age: Dawn of the Dinosaurs this summer.

"Monsters [vs. Aliens], which opened at the end of March, is still playing in theatres and to date has grossed over $190 million in North American box office," Ellis said.

"This is indicative of the results we have seen with 3-D films so far outperforming traditional 2-D films by a ratio of close to four times. This added longevity in theatres combined with the $3 3-D price premium is great for our box office."

McGrath said the 3-D experience doesn't have to be limited to films, and it "also presents tremendous growth potential in terms of attendance, on-screen advertising and alternative content programming."

"We see a future where NBA basketball, NFL football, NHL hockey and other professional sports are regularly presented in 3-D in our theatres," he added.

Record 1st-quarter results for attendance, box office

Cineplex has said in the past that economic downturns are good for the movie business, Its first-quarter results, which represented a record for attendance, box office, concession and total revenues, seemed to confirm this.

McGrath said the company sees "significant long-term growth opportunities given the tremendous strength and targeting power of the medium."

At the end of April, Cineplex completed the acquisition of Onsite Media Network, a digital media signage company that broadcasts advertising and custom content to office towers and sports stadiums.

"This acquisition enables us to extend our advertising reach beyond our theatres and into some of Canada's premiere high-traffic facilities, resulting in more than 120 million additional annual impressions to our advertising network," McGrath said.

Cineplex also plans to expand its alternative programming, including the successful Live in HD program that broadcasts live performances to theatres around the country.

In addition, the company hopes to expand its online store, which currently sells DVDs, to allow customers to download movies electronically.

McGrath said the company will open two new theatres in 2009 — in London, Ont., and Edmonton — and will retrofit four others.

"We continue to improve our assets with the closure of underperforming theatres and replacing older facilities. Over 80 per cent of our screens are stadium and this number will continue to improve," added Jacob.

Last week, the movie theatre operator reported net earnings of $3.7 million, or seven cents per diluted unit, for the quarter that ended March 31, reversing a year-earlier loss of $2.3 million, or seven cents per diluted unit.

Revenue rose 11.2 per cent to $211 million from $189.8 million the year before. The increase was driven by a nine per cent jump in attendance, which brought in $16 million for the quarter.

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 9,000 people and operates through such brands as Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres.