Brenda O’Farrell
Investing.com – A day after shareholders enthusiastically endorsed a $2.2-billion deal to sell Cineplex Inc . (TSX:CGX) to a British-based conglomerate, the largest Canadian theatre operator reported its latest earnings that showed revenue streams hitting record-setting highs.
The Toronto-based cinema operator revealed 2019 revenues reached $1.67 billion, up from the 2018 total of $1.61 billion. The positive results were achieved despite the fact that fewer people went to the movies last year, the company reported.
Cineplex said it welcomed 66.4 million visitors at its theatres in 2019, which was a drop from the 69.3 million movie-goers who walked through its doors in 2018. Last year was the fourth year Cineplex saw its number of customers drop.
The drop in the number of movie-goers translated in a 2.6% dip in box office revenues to hit $705.5 million. The company’s food service revenues increased 1.3%, however, to reach $446.6 million, a new all-time record. Cineplex had also introduced alcoholic beverages at slightly more than half of its theatres, which helped spur greater revenues at its concession operations, and increasing per-customer spending.
Overall revenues for the last quarter, which ended Dec. 31, were $443.2 million, an 3.5% increase compared with the $427.8 million reported in the same three-month period the previous year.
On Tuesday, shareholders voted 99.95% in favour of selling the company to Cineworld Group (LON:CINE), the largest cinema operator in the world, for $2.2 billion. The deal is now expected to be finalized before the end of June.
Cineplex operates 165 theatres across Canada, and has 13,000 employees.