Cineplex (TSX:CGX) showed signs of recovery in September, bringing in $37.7 million in box office revenue, a 7% increase over the same month last year. That improvement helped offset August’s weaker performance and brought third-quarter box office totals to $159.5 million, which is still 9% below 2024 levels but a notable step in the right direction. Key drivers of the September rebound included The Conjuring: Last Rites and Demon Slayer: Infinity Castle, both of which broke franchise records and performed exceptionally well in premium formats.
Premium experiences continue to play a central role in Cineplex’s strategy. In September, nearly 60% of The Conjuring’s revenue came from upgraded screenings, building on a second quarter where premium formats accounted for over 46% of box office sales.
In the company’s most recent quarter, which ended on June 30, Cineplex’s sales jumped by 31% year over year to $361.8 million. The bad news is the company still incurred a loss of $2.2 million from its continuing operations, but it was still an improvement from the $21.3 million loss it posted a year ago. A 33% rise in attendance contributed to the sharp turnaround, as Cineplex continued to recover from the challenges of recent years.
Despite the recent progress, the stock is down 8% year to date. If Cineplex’s business can continue showing improvement, however, it may only be a matter of time before it starts to rally again as the stock is trading at less than 14 times its projected future earnings, and it could make for a compelling option for value-oriented investors.
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