The movie theatre industry faced its toughest challenge in decades in the form of the COVID-19
pandemic. Indeed, the industry had already been weakened due to the rise of streaming and other
popular home entertainment options. Cineplex (TSX:CGX) boasts a cinema monopoly in Canada. Today, I
want to discuss whether it is worth snatching up this Canadian movie theatre stock on the dip.
Shares of Cineplex have plunged 28% in 2022 as of close on August 25. That has represented all
Cineplex’s losses in the year-over-year period.
Cineplex unveiled its second quarter fiscal 2022 earnings on August 11. Total revenues soared 438%
year-over-year to $349 million. Meanwhile, theatre attendance jumped 866% to 11.1 million. The
company was still operating at a fraction of its full capacity last year due to the ongoing COVID-19
pandemic. That has accounted for the massive spike in revenues and attendance.
Box office and concession revenues per patron have delivered 16% and 19% growth, respectively, in the
first six months of fiscal 2022 compared to the prior year. The company has a solid movie release
schedule to look forward to in the months ahead.
Cinemas have the typically profitable Halloween season to look forward to in October. It will bring movie
releases like Hocus Pocus 2, Smile, and Halloween Ends. Cineplex stock is trading in attractive value
territory compared to its industry peers. The company is also on track for solid revenue growth going
forward.
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