Cineplex’s revenue plummets 95% from $438.9M to $22M

The closure of Cineplex Inc. theatres during the COVID-19 pandemic left the company with a loss of almost $100million and a nearly 95 per cent less revenue in the second quarter.

“Our second quarter results were severely impacted by COVID-19, resulting in substantial decreases when compared with last year,” Cineplex chief executive Ellis Jacob said Friday.

The Toronto-based theatre chain said Friday its loss was $98.9 million or $1.56 per share for the three months ened June 30, compared with a profit of $19.4 million or 31 cents per share in the same quarter last year.

Revenue totalled $22 million, plummeting from $438.9 million, while it depleted cash by between $15 million and $20 million each month.

The quarter offers a snapshot of how deeply COVID-19 hurt the company, which had been preparing to be purchased by another company until their $2.8-billion friendly deal fell apart in June.

Due to the pandemic, Cineplex was forced to conduct temporary layoffs, slash salaries and negotiate rent relief from landlords while theatres sat empty after March 16.

It was left to rely on its at-home movie rentals, concession stand deliveries through Uber Eats and SkipTheDishes and its digital signage business.

On top of Cineplex’s troubles at the theatre, Jacob said the company had mutually agreed to end its deal with TopGolf, virtual reality golfing concept it was due to roll out in Canada.

“The current environment is simply not an opportune time for us to invest in these large development projects, but we hope to see TopGolf come to Canada in the future,” said Jacob.

It has also had to deal with the fallout from Cineworld Group PLC walking away from a $2.8 billion deal to buy the company on June 12.

Cineplex has filed a lawsuit against its former suitor over the failed deal.