Canada's Cineplex Q1 revenue rises on higher theatre attendance

Overview

• Canada cinema operator's Q1 revenue grew yr/yr, highest since 2019

• Adjusted EBITDA for Q1 rose nearly 50% yr/yr

• Company repurchased 463,506 shares under NCIB during quarter

Outlook

• Cineplex expects to capitalize on upcoming film releases to improve cash flow

Result Drivers

• THEATRE ATTENDANCE - Q1 box office revenue rose 25% yr/yr, driven by a 17.3% increase in theatre attendance, supported by promotional pricing and strong film slate

• PER-PATRON SPENDING - Achieved record box office per patron of C$12.94 and concession per patron of C$9.54, reflecting higher spend per guest

• INTERNATIONAL CONTENT - International films accounted for 13% of box office revenue, with record-setting performance from titles such as Dhurandhar: The Revenge

Company press release: ID:nGNX8YMkvN

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the leisure & recreation peer group is "buy"

• Wall Street's median 12-month price target for Cineplex Inc is C$12.50, about 5.9% above its May 8 closing price of C$11.80

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.