Cineplex doubled its profits in the third quarter as the movie exhibitor countered a decline in moviegoers with higher priced tickets and more sales at its concession stands.
CEO Ellis Jacob told analysts a strong start to the summer movie season quickly petered out as blockbuster hits like The Dark Knight Rises and The Amazing Spider-Man were followed by numerous flops. "With the exception of The Bourne Legacy, films in the latter part of the quarter generated softer than expected results," he said.
Yet the company still managed to strengthen results, on ticket price increases in some regions and overall stronger concession sales, which it attributed to changes in its food selection and better promotions.
Canada's largest movie theatre operator said that net income rose to $51.7 million, or 83 cents per share, in the three month period ended Sept. 30.
The results compared to $25.7 million, or 44 cents per share, in the same period a year earlier.
Revenues grew 1.7 per cent to $281.4 million, beating analyst expectations by about $3 million, and rising about $276.7 million a year earlier.
Concession revenue per person was also up 5.6 per cent to $4.68.
It said that aside from the top five films, the rest of the summer movie lineup bombed, including Total Recall. Attendance was down one per cent at its cinemas to 18.3 million tickets sold, but by raising ticket prices in some regions, box office revenue increased to a record $8.84 per person.
