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Cineplex Doubles Profits

However, for the most part, movie attendance was lower.

Higher ticket and concession prices helped Cineplex double its profits, despite a lower overall attendance rate.

It also helped that the top five grossing films of the year ("Dark Knight Rises" was the biggest draw of the summer, followed by "The Amazing Spider-Man") did better than the top five films of previous years (like last year's "Harry Potter and the Deathly Hallows 2"). Movie-goers, on average, paid $8.84 for a ticket per person, and shelled out around $4.68 for drinks and popcorn per person, which The Globe and Mail cited as an increase of 5.6 per cent. It was this that helped the movie theatre chain set new records for its third quarter profits.

“Total revenues for the third quarter increased 1.7% compared to a year ago and our merchandising and media businesses delivered strong results,” said Ellis Jacob, President and CEO of Cineplex Entertainment, in an official press release. Revenues grew 1.7% to $281.4 million from $276.7 million at the same time last year.

Although numbers were encouraging, attendance overall was down 1% this year given an overall poor summer line-up of flicks.

Photo: www.cineplex.com

Resources:

http://www.theglobeandmail.com/globe-investor/cineplex-profit-doubles-despite-flat-attendance/article5085015/

http://business.financialpost.com/2012/11/08/cineplex-doubles-profit-as-ticket-prices-rise/

http://www.cineplex.com/default.aspx

http://mediafiles.cineplex.com/_att/98c80631-7a03-47c7-b7c9-afd1bb638cb4/Q3%202012%20Press%20Release.pdf