Canadian movie theatre chain Cineplex (CGX) has posted a quarterly profit for the first time
since the COVID-19 pandemic began in March 2020.
The Toronto-based company said its net income reached $1.3 million in the second quarter of
this year, compared to a loss of $103.7 million a year earlier. Revenue in the period totaled
$349.9 million, a 439% increase from $64.9 million a year ago.
The revenue growth was driven by increased attendance at movie theatres across Canada with
11.1 million people going to the movies during Q2, an increase of 909% from just 1.1 million
during the same period of 2021.
Separately, Cineplex said it remains in ongoing litigation with Cineworld Group regarding an
aborted takeover.
In December 2021 Cineplex was awarded $1.24 billion in damages by the Ontario Superior
Court after Cineworld abandoned plans to takeover Cineplex amid the global pandemic.
Cineworld initially reached an agreement to acquire Cineplex in December 2019 but abandoned
the deal in June 2020.
An appeal of the Ontario Superior Court award to Cineplex is scheduled to be heard this
October.
Year-to-date, Cineplex stock is down 14% and trading at $11.38 per share.
