Cineplex profit jumps on higher Q2 attendance, more spending per person

A helping hand from the Avengers, Incredibles and Deadpool resulted in record revenue for Cineplex Inc. in the second quarter.

The Toronto-based entertainment giant said sequels to the superhero hits delivered increasing audience numbers and money spent at concession stands, bringing the company’s revenues to an all-time high 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 or 2 cents last year. Analysts had estimated $414 million of revenue and 24 cents per share of net income, according to Thomson Reuters Eikon.

Ellis Jacob, the president and chief executive officer of Cineplex, said there wasn’t a single factor that prompted the strong performance.

“We had a lot of stars aligning,” he said. “The box office did well (and) the food side of the business did extremely well with a significant increase in our concession revenues per patron.”

Cineplex shares added more than two per cent in morning Toronto trading before sliding back. They ended the day at $29.10, down 3.96 per cent.

The only “blemish,” he said, was that the company’ s revenues were slightly lower than it expected for its Rec Room gaming restaurants, which brought in $15.7 million in revenue in the quarter.