Cineplex Inc (TSX:CGX) was up 3.5% in the latter half of the noon hour on August 31. The share price has risen 7.6% in the last week after dropping due to disappointing attendance numbers. The North American box office has had one of its worst summers in decades. Hollywood has offered up a slate that has failed to draw interest from audiences and the movie industry is facing intense competition from streaming sites that are starting to produce premium original content. This is part of the reason Cineplex stock has dropped 25% in 2017.
On Friday, August 25 the company announced that it would offer discount pricing due to the lack of decent summer options for movie-goers. The discount was to run up to August 31 which explains the stock boost as investors may anticipate a spike in attendance in this last week. There are bright spots on the horizon for Cineplex. The recent Mayweather-McGregor boxing match was shown at select theatres and drew in large numbers. There are also several big movies on the slate in the fall and winter months.
Stephen King’s It remake is expected to bring in big box office numbers, as well as Blade Runner 2049, Thor: Ragnarok, Justice League, and of course the 8th installment in the Star Wars franchise Star Wars: The Last Jedi. These releases should provide some added momentum as Cineplex stock looks to rebound from what has been a difficult 2017.
