GOOD GROWTH
Cineplex looking forward to year of quality movies, full theatres.
TORONTO • With a slate of highly anticipated 2015 movie blockbusters in the queue, Cineplex Inc.’ s chief executive is preparing for a year the industry predicts will mark an all-time business high after tepid audience attendance in 2014.
In the fourth quarter ended Dec. 31, attendance at Cineplex’s chain of 160 theatres rose 0.9%, but box-office revenue per patron fell 3.8% due to a lower number of pricier 3D screenings.
In a year that included a number of forgettable cinematic bombs like Sex Tape starring Cameron Diaz and box-office disappointments such as Tom Cruise’s Edge of Tomorrow, attendance at theatres open for more than a year dropped 5.6% in 2014. The year also saw a number of films pushed back to a 2015 release, including the seventh instalment of the Fast and Furious franchise and the science fiction fantasy Jupiter Ascending.
“In 2013 we had some very strong movies like Frozen and Gravity that did extremely well, and they were all in 3D at a higher ticket price,” CEO Ellis Jacob said in an interview.
“In 2014 we had strong movies, but not as strong as [the prior year]. I always say to everybody, we set the table — we don’t serve the steak.”
Despite that, Cineplex posted a 59% rise in profit to $32.1 million in the fourth quarter, or 51¢ per share, compared with $20.2 million (32¢) in the same period a year ago.
Revenue climbed 2.8% to $332.2 million thanks to stronger concession sales and improved traction in Cineplex’s digital media business.
As a hedge against less than stellar years and the audience-depleting allure of home entertainment and gaming, Cineplex has incorporated a number of technological enhancements and licensed premium movie lounges to make the theatre experience more exciting and social.
The company recently said it will open a pilot project called “The Rec Room” in Edmonton later this year, a restaurant and entertainment venue including an arcade and an auditorium for live music and comedic performances. Cineplex is also looking at other games such as bowling, billiards and Ping-Pong.
But the core business looks to be in good stead for 2015, starting with the release on Thursday of the highly anticipated film adaptation of Fifty Shades of Grey.
“The industry is saying this is going to be the biggest year ever,” Mr. Jacob said.
Avengers, Picture Perfect 2, Star Wars and a new Bond movie are expected to draw high box office numbers.