Cineplex reports $24.7M loss on tribunal penalty

Cineplex Reports Loss in Latest Quarter Due to Competition Tribunal Fine

Cineplex Inc. recently announced a loss in its latest quarter, a stark contrast to the profit it reported in the same period last year. The movie theatre company disclosed a loss of $24.7 million or 39 cents per diluted share for the quarter ending on September 30, compared to a profit of $29.7 million or 40 cents per diluted share in the previous year.

The significant loss in the recent quarter was primarily attributed to a $39.2 million provision related to a fine imposed by the Competition Tribunal. This penalty stemmed from allegations of deceptive marketing practices, specifically concerning the presentation of movie ticket prices to online customers. Cineplex is currently in the process of appealing this decision.

Despite the financial setback, Cineplex’s revenue for the quarter still amounted to $395.6 million, although it was lower than the $414.5 million generated in the corresponding quarter of the previous year. Furthermore, the company experienced a decrease in theatre attendance, with 13.3 million patrons in the recent quarter compared to nearly 15.7 million in the same period last year.

On a positive note, box office revenue per patron saw an increase to $13.19 from $12 in the previous year’s quarter. Similarly, concession revenue per patron also rose to $9.85 from $8.44 in the same period last year.

Despite the challenges faced by Cineplex, the company remains focused on delivering exceptional movie experiences to its customers. As Cineplex continues to navigate through these difficulties, it is committed to maintaining its position as a leading entertainment destination for moviegoers.

This report by The Canadian Press was first published on November 6, 2024.