Cineplex’s Q1 Revenue Soars 452% As Moviegoers Return

Canadian movie theatre chain Cineplex (CGX) reported that its first-quarter revenue amounted
to $228.7 million, up 452% from $41.4 million in the first three months of 2021.

The Toronto-based company attributed the revenue increase to moviegoers returning to
cinemas nationwide as COVID-19 restrictions were eased across Canada.

Box office revenue per patron in this year’s first quarter hit a record $12, compared with $9.20 a
year ago, while concession revenue per patron reached an all-time quarterly record of $8.82, up
from $6.12 in the same period last year.

For the first time in more than two years, Cineplex's entire roster of venues is open without
restrictions across Canada, but the industry is still grappling with how pandemic habits will factor
into the future of big screen film releases.

The health crisis pushed many studios to release films on streaming platforms, skipping or
minimizing their theatrical runs, and even inspired U.S. movie theater giant AMC (AMC) to start
charging more for opening week screenings of new films such as “The Batman.”

However, despite the upturn in attendance and spending, Cineplex still reported a first-quarter
loss of $42.2 million, which amounted to $0.67 per share, compared with a loss of $89.7 million
or $1.42 per share a year earlier.

Theatre attendance during Cineplex's first quarter totalled 6.7 million compared with 415,000 in
the same quarter of 2021, when it faced pandemic-related closures for a majority of the period.

Many consumers visited Cineplex screens to see “The Batman” during the first quarter. But the
real boon in Q1 was the film “Spider-Man: No Way Home,” which made up 20.4% of Cineplex's
first-quarter box office.

Cineplex said it expects a strong summer box office with upcoming tentpole releases such as
“Top Gun: Maverick,” “Lightyear” and “Thor: Love & Thunder.” slated to première in coming
weeks and months.