cineplex and big profits
Despite decreasing overall attendance, the Canadian exhibitor said that premium pricing for certain films
accounted for half of its box office.
Despite decreasing total attendance, the Canadian exhibitor claimed that premium tickets for films like "Avatar: The Way of Water" accounted for half of its box sales.
In contrast to its performance in 2021, Cineplex's overall revenues increased 16.7% to $350.1 million, resulting in a fourth-quarter profit.
The Canadian exhibitor's net profits for the three months ending December 31, 2022 increased to $10.2 million from a net loss of $21.8 million in the corresponding quarter of 2021. A record-breaking 50% of box office receipts at Cineplex came from big screen and reserved seating options, demonstrating the success of the company's investment in premium movie viewing experiences including 3D, UltraAVX, VIP seating, and Imax.
At the same time, 9.2 million fewer people visited theaters during the fourth quarter, a drop of little over 10%. The decline in moviegoer numbers, according to Cineplex President and CEO Ellis Jacob, was partly caused by COVID 19-related production delays that caused Warner Bros. Discovery to postpone the theatrical releases of Shazam: Fury of the Gods and Aquaman and the Lost Kingdom until 2023.
The current fourth quarter revenue gains for Cineplex came from quarterly record box office sales per patron at $13.06 and a new record for concession revenues per patron of $8.93, as Jacob characterized the industry upheaval.
In a statement that accompanied his most recent financial results, Jacob stated, "Our performance over the past year illustrates that we can successfully handle the tumultuous environment caused by content and other supply chain disruptions, inflationary pressures, and labor shortages.
The head of Cineplex also told THR that the box office slump that occurred in the summer of 2022 as a result of a dearth of big-name blockbusters had passed and that through 2023, consumer demand for Hollywood films at neighborhood theaters will increase.
Regarding future Hollywood films like Ant Man, John Wick 4, Guardians of the Galaxy 4, and Mission: Impossible - Dead Reckoning Part One, Jacob noted, "We're not there on material, but we're getting there.
Jacob responded that the company's diversification into a variety of entertainment venues and offers gave some room for price increases when asked about how Cineplex may be seeking to reconsider its pricing methods for its cinemas with dynamic pricing,