Cineplex (TSX: GCX) saw a 12.8% drop in visitors in the third quarter of 2017 compared to the same period last year. Only 16.8 M customers visited Cineplex movie theaters during the summer season. This is the first time since 2008 that this figure does not reach 18 M.
According to several experts, this decline in attendance, which also affects Cineplex’s revenue, is due to a combination of two important factors. The first one being a lack of attractive films during the summer and the second being a stagnation of overall growth. Opportunities for innovation in the film industry are limited. Cineplex has been working for several years to reduce its dependence on Hollywood by offering alternative programming and sophisticated technology in its movie theaters.
The month of December will determine Cineplex’s ability to adjust to this drop in attendance. The arrival of several big titles including the new Star Wars movie should reverse the tendency. Also, an agreement signed between the NFL (National Football League) and Cineplex for the broadcast in movie theatres of Sunday Night Football games and the Superbowl should help the Canadian company to further reduce its dependence on Hollywood.
Cineplex bringing NFL Sunday night games, Superbowl to theatres. (2017, novembre 3). Consulté 1 décembre 2017, à l’adresse http://www.cbc.ca/news/business/cineplex-nfl-theatres-1.4386231
Cineplex Inc (CGX.TO) Moving Above the Rising Trendline. (2017, novembre 30). Consulté 1 décembre 2017, à l’adresse https://finnewsreview.com/cineplex-inc-cgx-to-moving-above-the-rising-trendline/
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O’Callaghan, A. (2017, novembre 7). Cineplex Inc. Falls on Third-Quarter Results. Consulté 1 décembre 2017, à l’adresse http://www.baystreet.ca/stockstowatch/2487/Cineplex-Inc-Falls-on-Third-Quarter-Results
Paddon, D. (2017, novembre 7). Cineplex CEO: weak Q3 attendance was due to one month, Q4 looks better. Consulté 1 décembre 2017, à l’adresse http://business.financialpost.com/pmn/business-pmn/cineplex-reports-q3-sales-and-profit-down-as-fewer-people-go-to-the-movies