A trio of superhero movies, increasing audience numbers and a focus on concession stand offerings helped Cineplex Inc. report a record revenue in its second quarter.
The Toronto-based entertainment giant said Friday that the strong box office performance of Avengers: Infinity War, Deadpool 2 and The Incredibles 2 contributed to all-time high revenues of $409.1 million for the quarter ended June 30, up about 12 per cent from the year before when it made $364.1 million.
The company’s net income also jumped significantly, increasing 1,670 per cent to $24.4 million, or 38 cents a share, this quarter from $1.4 million last year.
Analysts had estimated $414 million of revenue and 24 cents per share of net income, according to Thomson Reuters Eikon.
“Cineplex reported record second quarter results including increases in revenue across all reportable segments,” president and CEO Ellis Jacob said in a statement
“In addition to growing our revenue sources, we continue to focus on optimizing our cost structure across our ecosystem, having implemented a cost reduction program during the second quarter with the expectation of realizing annualized cost savings of $25.0 million by the end of the year.”
The company announced in April that it would lay off “a number of” full-time workers to eliminate duplicate roles following several business acquisitions.
The layoff came as Cineplex has been focused on minimizing the unpredictability of the box office and competing with the popularity of on-demand streaming services by putting attention on its signage business and expanding gaming and restaurant brands it operates, including the Rec Room, Playdium and forthcoming virtual sports complexes TopGolf.
It’s also looking at food as a way to nab more customers. In June, Cineplex partnered with Uber Eats to launch a popcorn and snack delivery program in 60 communities throughout Ontario, Alberta, B.C. and Quebec in June and also toyed with expanding concession stand offerings and alcohol in some markets.
On Friday, Cineplex reported that concession revenue per patron rose 9.3 per cent to $6.59.
Box office revenue per patron also climbed 4.4 per cent to $10.82 and attendance rose by 5 per cent to 17.3 million from 16.5 million.
Cineplex said 24 per cent of its box office revenues were attributable to Avengers: Infinity War. Deadpool 2 represented 11.3 per cent, Incredibles 2 9.6 per cent, Jurassic World: Fallen Kingdom 6.8 per cent and Solo: A Star Wars Story 6 per cent of box office revenues.
Cineplex shares were ahead by 1.9 per cent in morning trading Friday on the TSX, climbing to $30.86