STAR WARS POWER
Film helps propel Cineplex
Expanding into new businesses such as gaming and enhanced specialty food has helped theatre chain Cineplex Inc. lure people away from on-demand entertainment in their living rooms, but Star Wars proved to be the real force behind its blockbuster annual and fourth-quarter results.
Net income more than doubled during the three-month period ended Dec. 31 to $76.8 million or $1.22 per share, up from $32.1 million (51 cents) a year earlier, and overall revenue soared 23 per cent to $407.4 million, the company said Tuesday
Cineplex shares closed up 4.43 per cent or $2.07 to $48.75 in Toronto trading Tuesday.
Box office revenue was $196.3 million in the period, up 14 per cent to $23.8 million.
“The fourth quarter and full year 2015 results were the best-ever in Cineplex’s history,” Cineplex Entertainment chief executive Ellis Jacob told analysts on a conference call.
“Our continued focus on diversifying our business model beyond the box office into new businesses that capitalize on our internal strengths and expertise combined with the strong performing box office are the key factors behind our success.”
Star Wars: The Force Awakens, which this week became the third film in history to surpass US$2 billion in global box office receipts, along with Titanic and Avatar, was in the company’s theatres for 14 days of the fourth quarter and was Cineplex’s top film for 2015 and the highest grossing film to date in North America.
Box office revenue per patron at Cineplex climbed 6.3 per cent to $9.63, while concession revenue per patron was $5.58, up 8.6 per cent.
Cineplex also had record patron attendance in the quarter of 20.4 million, seven per cent higher than a year ago.
For the full year, Cineplex saw revenue rise 11 per cent in 2015 to $1.37 billion, from $1.23 billion in 2014. Overall attendance rose 4.6 per cent.
Net income rose 76 per cent to $134 million, or $2.12 per share, from 76.3 million ($1.20).
The latest Star Wars instalment also provided holiday toy sales with a significant boost this year.
Star Wars: The Force Awakens didn’t just light up the box office — the blockbuster movie just might have helped toy sales revive an otherwise weather-weakened Christmas retail season.
Toy sales in Canada rose eight per cent in 2015 to $1.8 billion from $1.6 billion in 2014, according to data from market research firm NPD Group Canada, and Star Wars accounted for about 20 per cent of the total increase.
Sales of Star Wars toys surged 244 per cent during the week of Dec. 20 to 26 compared with a year earlier. Toys related to the movie franchise were the top-selling toys of the year in Canada, hitting sales of close to $100 million in Canada.