Cineplex (CGX) revenues rose in its second quarter, but its net loss widened. As of July 17, all of the company’s theaters and entertainment venues were open.
Canada’s largest movie theater chain’s revenue for Q2 2021 came in at C$64.9 million, an increase of 195.3% from the C$22 million reported in Q2 2020. Box office revenue was C$12.5 million, mainly due to an increase in attendance in June, as Cineplex was able to open more theaters. Food Services revenue increased C$10 million (to C$13.3 million), during the quarter.
Media revenue reached C$9.4 million, compared to C$8.1 million in the same quarter last year, while Amusement revenue increased to C$22.2 million from C$3.7 million. Other revenues increased to C$7.6 million from C$7.1 million a year ago. (See Cineplex stock charts on TipRanks)
Meanwhile, Cineplex reported a net loss of C$103.7 million (C$1.64 per diluted share) in the quarter ended June 30, compared to a net loss of C$98.9 million (C$1.56 per diluted share) in the prior-year quarter.
Cineplex president and CEO Ellis Jacob said, “Looking ahead, the recent box office results are very encouraging, as is the upcoming film release schedule. We continue to implement our VenueSafe measures so guests can feel comfortable returning to our venues with family and friends. We have prepared for this for many months and with our efforts to control costs and solidify our liquidity and financial position during the closure period, we have set the stage for a strong comeback.”
On August 10, RBC Capital analyst Drew McReynolds reiterated a Hold rating on CGX with a price target of C$11.00. This implies 9.9% downside potential.
The rest of the Street is cautiously optimistic on CGX with a Moderate Buy consensus rating based on two Buys and one Hold. The average Cineplex price target of C$16.33 implies 33% upside potential to current levels.
Related News:
Quebecor’s Q2 Profit Down 29%; Shares Fall 5%
BCE’s Q2 Profit Beats Estimates
BlackBerry Q1 Revenue Falls, Beats Estimates
