Cineplex Inc. (TSX:CGX) has issued some revealing numbers concerning attendance at its movie theatres.
The company said that more than 1.5 million moviegoers have attended its cinemas since July 1. However, the numbers are down sharply due to the COVID-19 pandemic and social distancing restrictions. Cineplex counted nearly 17.5 million moviegoers in the third quarter of 2019, which ends on September 30. Year-over-year, that works out to a nearly 92% plunge in attendance.
Cineplex has also suffered from distributors seeking alternative means for exhibition, such as The Walt Disney Company (NYSE:DIS) did with its latest film, 'Mulan', which was made available for $34.99 on its Disney+ streaming service. Christopher Nolan’s blockbuster 'Tenet' raked in just $20.2 million U.S. at the North American box office over the Labour Day weekend, compared to a $50-million U.S. opening for his 2017 film 'Dunkirk.'
On Wednesday, Disney announced the delay of several tentpole movie releases from this fall to summer 2021, including blockbuster Marvel movies 'Black Widow' and 'The Eternals,' as well as the Steven Spielberg directed version of 'West Side Story.'
Cineplex shares have fallen nearly 75% since the global pandemic was declared in March and now trades at just under $8 a share. The company’s stock was removed from the S&P/TSX Composite Index on Monday of this week.
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